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Divisional Income Statements and Return on investment Analysis E. Lynch Company is a diversified investment company with three operating divisions crida metters Coded data taken from the records of the three disons for the year ended 30 20v, are as follows Mutual Fund Electronic Investment Division Brokerage Banking Division Division Fee revenue $2,380,000 $2.500,000 52,410,000 Operating expenses 1.162,000 1,054,600 1,704,400 Invested assets 6,700,000 7.300,000 4,000,000 The management of Ex Lynch Company is evaluating each division as a basis for planning a future pan of cortions Required: 1. Prepare condenses divisional income tatements for the live divisions, ming that there were no service department commen, E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 2018 Mutual Electronic Investment Fund Brokerage Banking Division Division Division Fee revenu Operating expenses Income from operations
1. Prepare condensed divisional income statements for the three divisions, assuming that there were to service department cost allocation E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 2018 Mutual Electronic Investment Fund Brokerage Banking Division Division Division Fee revenue Operating expenses Income from operations 2. Using the Duront formula for return on investment, compute the brunt margt, vestimentomove and return on went for each don Round your answers to one decimal place Division Profit Margin Investment Turnover ROI Mutual Fund Division % Electronic Brokerage Division Investment Banking Division 3. When faced with limited funds for expansion management should consider an expansion of the Division first