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 $710,000 346,000 2,600,000 $750,000 Fee revenue Operating expenses Invested assets The management of EFLynch Company is evaluating each division as a basis for planning a future expansion of operations. Required: $740,000 524,000 1,500,000 274,800 2,200,000 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20YS Mutual Fund Division Electronic Brokerage Division Investment Banking Division 710000750,000 Fee revenue 710,000 740,000 V Operating expenses024 Income from operations 364,00475200 346,000 274,800Y 524,000 216,000 2. Using the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to one decimal place. Division Mutual Fund Division Electronic Brokerage Division Investment Banking Division Profit Margin ROI 3. When faced with limited funds for exDansion. manaaement 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 charges. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20YS Mutual Fund Division Electronic Brokerage Division Investment Banking Division 750,000 274,800 Income from operations 36000475,200 710,000 740,000 524,000 216,000 Fee revenue Operating expenses 40027400V Y Check My Work 1. For each division, subtract operating expenses from fee revenue. Learning Objective 4. 2. Using the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to one decimal place. Division Mutual Fund Division Electronic Brokerage Division Investment Banking Division 3. When faced with limited funds for expansion, management should consider an expansion of the Electronic Brokage Division first. Profit Margin ROI