Divisional Income Statements and Return on Investment Analysis

E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows:

	Mutual Fund Division		Electronic Brokerage Division		Investment Banking Division
Fee revenue	$2,210,000		$2,290,000		$2,210,000
Operating expenses	1,076,000		963,400		1,562,000
Invested assets	8,100,000		6,700,000		4,500,000

The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations.

Required:

1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department cost allocations.

E.F. Lynch Company
Divisional Income Statements
For the Year Ended June 30, 20Y8
	Mutual Fund Division	Electronic Brokerage Division	Investment Banking Division
Fee revenue	$fill in the blank aece85017026f8e_1	$fill in the blank aece85017026f8e_2	$fill in the blank aece85017026f8e_3
Operating expenses	fill in the blank aece85017026f8e_4	fill in the blank aece85017026f8e_5	fill in the blank aece85017026f8e_6
Income from operations	$fill in the blank aece85017026f8e_7	$fill in the blank aece85017026f8e_8	$fill in the blank aece85017026f8e_9

2. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. Round your answers to one decimal place.

Division	Profit Margin	Investment Turnover	ROI
Mutual Fund Division	fill in the blank d679fd052ff7047_1%	fill in the blank d679fd052ff7047_2	fill in the blank d679fd052ff7047_3%
Electronic Brokerage Division	fill in the blank d679fd052ff7047_4%	fill in the blank d679fd052ff7047_5	fill in the blank d679fd052ff7047_6%
Investment Banking Division	fill in the blank d679fd052ff7047_7%	fill in the blank d679fd052ff7047_8