a-2. which division had the better performance? east or west

$7.000 690 Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 20 percent. Selected financial information (in thousands of dollars) for the first year of business follows: West Sales revenue Income Investment (beginning of year) 5,000 Current liabilities (beginning of year) RGD expendituresa R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming BMI uses residual income (Enter answers in thousands of dollars. Negative amounts should be indicated by a minus sign.) East $2,080 550 4,000 300 1,000 Ded 380 900 DOR Residual Income Divisions East West a-2. Which division had the better performance? West