Exercise 14-29 (Static) Evaluating Business Units Using Residual Income (LO 14-3) Sarang Music (SM) has two divisions: South and North. SM has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business follows: South North Sales revenue $1, 080 $5, 000 Income 200 390 Investment (beginning of year ) 2, 000 3, 000 Current liabilities (beginning of year ) 200 200 R&D expenditures 500 400 Required: Evaluate the performance of the two divisions assuming SM uses residual income. (Enter answers In thousands of dollars. Negative amounts should be Indicated by a minus sign.) Residual Divisions Income East (60) West M