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, 2018, are as follows: Fee revenue Operating expenses Invested assets Mutual Fund Electronic Brokerage Investment Banking Division Division Division $930,000 $960,000 $930,000 454,000 3,400,000 355,200 2,800,000 656,400 1,900,000 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, 2018 Fee revenue Mutual Electronic Investment Fund Division Brokerage Division Banking Division Operating expenses Income from operations 2. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. Round your Invested assets 3,400,000 355,200 2,800,000 656,400 1,900,000 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, 2018 Mutual Fund Electronic Investment Brokerage Division Division Banking Division Fee revenue Operating expenses Income from operations 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 Mutual Fund Division Electronic Brokerage Division Profit Margin Investment Turnover % 96 ROI Investment Banking Division 3. When faced with limited funds for expansion, management should consider an expansion of th Electronic Brokerage investment Banking Mutual Fund vision first