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G Q10: Weather Accessories, Inc., has four divisions-Winter, Spring, Summer and Fall. The company is looking into the performance of the Spring and Fall investment

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G Q10: Weather Accessories, Inc., has four divisions-Winter, Spring, Summer and Fall. The company is looking into the performance of the Spring and Fall investment centers. Calculate the Return on Investment and Residual Income for each division 191 and explain the results. (CLEARLY SHOW AND LABEL ALL CALCULATIONS). 192 Spring Fall 193 Sales $251,200 $274,700 194 Net Income $86,440 $125,040 195 196 Avg Operating Assets $772,000 197 (investment) $872,700 198 199 a. Calculate the Return on Investment (ROI) for Spring and Fall. 200 201 (enter formula) Spring Fall 202 Return on Investment (ROI) = 203 204 205 Return on Investment (ROI) = 206 207 208 b. Calculate the Residual Income for Spring and Fall if the cost of capital is 13% 209 210 Spring Fall 211 Income 212 Minimum Income 213 (show calculation in this row) 214 Residual Income = 215 216 c. Explain what these tell you about Spring and Fall as Investment Centers. 217

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