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Table 1: Riverbend Studios current year data

	Entertainment	Streaming	Parks
Revenues	$54,583,520	$30,184,570	$7,564,270
Fixed COGS	$3,356,850	$4,074,530	$3,159,430
Variable COGS	$40,257,310	$22,020,695	$3,698,928
# of customers	15,264,200	1,420,060	30,240
# of employees	11,562	1,954	1,378
Average net operating assets	$29,014,000	$19,252,000	$420,000
Selling and admin costs	$3,259,520	$944,620	$231,900

1. Summarize this years company performance by preparing a segmented income statement similar to the following format (If a division has negative operating income, please calculate negative income tax, i.e., an addback, for that division):

	Entertainment	Streaming	Parks	Overall
Sales
COGS
Gross Margin
Allocated overhead
Selling and administrative
Operating Income
Tax expense
Divisional income

2. Based on the appropriate segmented income value, calculate current ROI, residual income and EVA for the three divisions. Please display ROI percentages in percentage format with two decimal places.

3. Calculate NPV and IRR and use them to evaluate Entertainments decision not to invest in the new animation studio. Was the decision appropriate and in the best interests of Riverbend Studios?

4. Evaluate the validity of Angela Imanahs complaint regarding her evaluated performance. Explain why it is or is not valid.

5. Perform a basic differential analysis showing the effect on operating income if Parks is shut down. Explain whether Parks should be shut down. We suggest using the following format for your financial analysis:

	Current	Parks Closed	Difference
Marriott Revenue
CM
Fixed COGS
Selling and Admin
Allocated Corporate
Operating Income

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