20. Return on Investment (ROI). The segmented income statements presented as follows are for the two divisions of Franklin Bikes. (This is the same company as the previous exercise. This exercise can be assigned independently.) Assume the Road Bikes division had average operating assets totaling $4,500,000 for the year, and the Mountain Bikes division had average operating assets of $800,000. Calculate ROI for each division. Franklin Bikes Segmented Income Statements for the Current Fiscal Year Ended December 31 (dollar amounts are in thousands) Road Bikes Division Mountain Bikes Division $ 1.500.000 800,000 Sales Cost of goods sold Gross margin Allocated overhead Selling and administrative expenses Operating income Income tax expense (30% ratel Net income 150.000 100.000 450.000 5 500000 215.000 $285.000 115.000 75.000 $ 95.000 28.500 5 66.500 $ $ 315,000 21. Residual Income (RI). The segmented income statements presented as follows are for the two divisions of Franklin Bikes. (This is the same company as the previous exercises. This exercise can be assigned independently.) Assume the Road Bikes division had average operating assets totaling $4,500,000 for the year, and the Mountain Bikes division had average operating assets of $800,000. The company's cost of capital rate is 8 percent. Calculate Rl for each division. Franklin Bikes Segmented Income Statements for the Current Fiscal Year Ended December 31 (dollar amounts are in thousands) Road Bikes Division Mountain Bikes Division $500000 $ 1.500.000 800,000 Sales Cost of goods sold Gross margin Allocated overhead Selling and administrative expenses Operating income Income tax expense (30% ratel Net income 150.000 100.000 450.000 $ $285.000 115.000 75.000 $ 95.000 280.500 5 66.500 $ 315,000