1. Prepare condensed divisional income statements for the year ended December 31, 2017, assuming that there were no service department charges. Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 20Y7 Road Bike Division Mountain Bike Division Sales Cost of goods sold Gross profit Operating expenses Income from operations 2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and rate of return on investment for each division. If required, round your answers to one decimal place. Division Road Bike Division Mountain Bike Division Profit Margin % % Investment Turnover ROI % % 3. If management desires a minimum acceptable rate of return of 16%, determine the residual income for each division. If required, use the minus sign to indicate a negative income. Road Bike Division Mountain Bike Division Residual Income 4. On the basis of income from operations, the income from operations Division is the more profitable of the two divisions. However, consider the amount of invested assets in each division. On the basis of residual income, the Division is the more profitable of the two divisions.