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Mary's Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Terrain Revenues Current assets

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Mary's Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Terrain Revenues Current assets Capital assets I Current liabilities Net operating income Sport $1,700,000 230,000 870,000 100,000 240,000 188,400 $800,000 40,000 660,000 100,000 50,000 36,400 City $6,000,000 410,000 1,590,000 500,000 610,000 484,400 After-tax income Weighted average cost of capital 10% 10% 10% Required: For each division compute (to two decimal) the: (3 marks each) Return on sales in % 1. 2. Return on investment (to two decimal) based on total assets employed in % Economic value added 3. 4. Residual income based on net operating income

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