Operating Income For Segments Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. Each division is evaluated as a profit center. Data for each division for last year are as follows (numbers in thousands): Home Restaurant Specialty Sales Cost of goods sold $4,130 $3,600 $2,550 2,900 2,640 1,700 Selling and administrative expenses 950 410 320 The income tax rate for Xenold, Inc., is 40 percent. Xenold, Inc., has two sources of financing: bonds paying 5 percent interest, which account for 25 percent of total investment, and equity accounting for the remaining 75 percent of total investment. Xenold, Inc., has been in business for over 15 years and is considered a relatively stable stock, despite its link to the cyclical construction industry. As a result, Xenold stock has an opportunity cost of 5 percent over the 4 percent long- term government bond rate. Xenold's total capital employed is $4.95 million ($2,600,000 for the Home Division, $1,600,000 for the Restaurant Division, and the remainder for the Specialty Division). Required: 1. Prepare a segmented income statement for Xenold, Inc., for last year. Enter the amounts in thousands. Xenold, Inc. Income Statement (in thousands) For the Year 20XX Home Restaurant Sales 4,130 > 3,600 Specialty 2,550 Total 10,280 Cost of goods sold 2,900 2,620 X 1,700 7,220 X Gross profit 1,230 980 X $ 850 3,060 X Selling and administrative expense 950 410 320 1,680 Division profit 280 570 x $ Income taxes 112 228 x 530 212 1,380 X 552 X After-tax income 168 342 X 318 828 x 3. Calculate EVA for each division and for Xenold, Inc. In your computations, carry the weighted average cost of capital to three decimal places. If the EVA is negative, enter your answer as a negative amount. Enter amounts as whole dollars not in thousands. Home Restaurant EVA $ -34,500 $ 222,000 X Specialty $ 261,750 Total $ 449,250 X