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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: Required: For each division

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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: Required: For each division compute (to two decimal) the: 1. Return on sales in % 12 Return on investment (to two decimal) based on total assets employed in % 1x Economic value added 14 Residual income based on net operating income Sport Terrain City Revenues $2,400,000 $997,000 $6,660,000 Current assets 292,000 92,000 622,000 Capital assets 870,000 660,000 1,590,000 Current liabilities 100,000 100.000 500.000 Net operating income 230,000 40,000 600,000 After-tax income 184,000 32,000 480,000 Weighted average cost of capital 10% 10% 10%

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