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Marys Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Sport Terrain City Revenues

Marys Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows:

Sport

Terrain

City

Revenues

$1,700,000

$800,000

$6,000,000

Current assets

230,000

40,000

410,000

Capital assets

870,000

660,000

1,590,000

Current liabilities

100,000

100,000

500,000

Net operating income

234,000

44,000

604,000

After-tax income

188,000

36,000

484,000

Weighted average cost of capital

10%

10%

10%

Required:

For each division compute (to two decimal) the:

  1. Return on sales in %

  1. Return on investment (to two decimal) based on total assets employed in %

  1. Economic value added

  1. Residual income based on net operating income

please answer in word

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