USING COMMON SIZE INCOME STATEMENT DATA
The 2009, 2008, and 2007 income statements for Entertainment Enterprises appear on the following page.
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Entertainment Enterprises Income Statement
|
|
|
Year
|
Ended December
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31,
|
|
|
2009
|
2008
|
2007
|
|
Revenues
Theme parks and resorts Filmed entertainment Consumer products
Costs and Expenses Theme parks and resorts Filmed entertainment Consumer products
Operating Income
Theme parks and resorts Filmed entertainment Consumer products
Corporate Activities
General and administrative expenses
Interest expense
Investment and interest income
Income (loss) on investment in Asian theme park
Income before income taxes Income taxes
Net income
|
$3,440.7
|
$3,306.9
|
$2,794.3
|
|
3,673.4
|
3,115.2
|
2,593.7
|
|
1,415.1
|
1,081.9
|
724.0
|
|
$8,529.2
|
$7,504.0
|
$6,112.0
|
|
$2,693.8
|
$2,662.9
|
$2,247.7
|
|
3,051.2
|
2,606.9
|
2,275.6
|
|
1,059.7
|
798.9
|
494.2
|
|
$6,804.7
|
$6,068.7
|
$5,017.5
|
|
$ 746.9
|
$ 644.0
|
$ 546.6
|
|
622.2
|
508.3
|
318.1
|
|
355.4
|
283.0
|
229.8
|
|
$1,724.5
|
$1,435.3
|
$1,094.5
|
|
$ 164.2
|
$ 148.2
|
$ 160.8
|
|
157.7
|
126.8
|
105.0
|
|
(186.1)
|
(130.3)
|
(119.4)
|
|
$ 135.8
|
$ 144.7
|
$ 146.4
|
|
$ (514.7)
|
$ 11.2
|
$ 63.8
|
|
$1,074.0
|
$1,301.8
|
$1,011.9
|
|
402.7
|
485.1
|
375.3
|
|
$ 671.3
|
$ 816.7
|
$ 636.6
|
Required:
1. Calculate how much each of the revenues and expenses changed from 2007 through 2009.
2. Explain what were the primary causes of Entertainment Enterprises' increase in net income in 2008 and the decrease in 2009.