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Please help, thank you!! eBook Divisional Income Statements and Return on investment Analysis E.R.Lynch Company is a diversified Investment company with three operating divisions organized
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eBook Divisional Income Statements and Return on investment Analysis E.R.Lynch Company is a diversified Investment company with three operating divisions organized as investment centers, Condemed data taken from the records of the three divisions for the year ended June 30, 2018, are as follows: Electronic Mutual Fund Investment Brokerage Banking Division Division Division Fee revenue $1,750,000 $1,810,000 $1,770,000 Operating expenses 943,600 760,600 1,338,000 Invested assets 6,400,000 5,300,000 3,600,000 The management of E. Lynch Company is evaluating each division as a basis for planning a Muture expansion of operations Required: 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department cost allocations E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 2018 Mutual Electronic Investment Fund Brokerage Banking Division Division Division Fee revenue Operating expenses Income from operations 2. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. Round your answers to one decimal place. 2. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division, Round your answers to one decimal place. Division Profit Margin Investment Turnover ROI Mutual Fund Division Electronic Brokerage Division 96 % Investment Banking Division Division first 3. When faced with limited funds for expansion, management should consider an expansion of the Step by Step Solution
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