E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of Excel the three divisions for the year ended June 30, 20Y8, are as follows: Electronic Investment Mutual Fund Brokerage Banking Division Division Division Fee revenue $4,140,000 $3,360,000 $4,560,000 Operating expenses 2,980,800 3,091,200 3,739,200 Invested assets 5,175,000 1,120,000 3,800,000 The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Instructions 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges. 2. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. Round percentages and the investment turnover to one decimal place. Answer + 3. If available funds permit the expansion of operations of only one division, which of the divisions would you recommend for expansion, based on parts (1) and (2)? Explain.Answers are entered in the cells with gray backgrounds. Ceils with non-gray backgrounds are protected and cannot be edited. An asterisk i'] will appear to the right out an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. E.F. LYNCH COMPANY Divisional Income Statements For the Year Ended June 3|] ZDYB Mutual Electronic Investment Fund Brokerage Bani-ting Division Division Division Fee revenue Operating expenses Income from operations Return on investment {ROI} Profit Margin x Investment Turnover Return on lnvestmenliROl} ' Income from O eratlons 3: Sales Invested Assets Mutual Fund Division: Electronic Brokerage Division: ROI Investment Banking Division: ROI [Key essay answer here]