If she decides to close Parks, she is fairly certain that the hotel facilities could be leased to Marriott for $650,000 annually.A report containing part of this year’s financial results for Riverbend Studios can be found in Table 1 below. The ‘Selling and admin costs’ listed in Table 1 are direct to each division (not allocated), and are fixed (that is, they do not change with increased/decreased production). In addition to the current year data in Table 1, there are $2,000,000 in corporate costs that should be allocated evenly between the three divisions (the allocation may seem odd, but go with it). These costs are primarily due to employee benefits costs, which are billed at the corporate level. If the Parks division is closed, the decreased employee base would reduce the $2,000,000 allocated corporate costs to $1,500,000. Riverbend Studios has a cost of capital and required rate of return 12% and income is subject to a 25% income tax rate. Before she can make any decisions, Karen needs some answers. She schedules a Zoom meeting with you, the company’s accountant.RequiredWrite a memo to Karen Brown from the perspective of the company accountant that responds to, and provides support for, the following questions. Financial analyses (including calculations for the required case questions) should be attached at the end of the memo. Again, this memo is written from the perspective of the company accountant to their client. It would be inappropriate to copy these case questions into your memo as if you were completing a homework assignmentSummarize this year’s 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

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	$231,9

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