PR 24-5B Sales Cost of goods sold Operating expenses Invested assets two divisions organized as investment centers, Invested assets and condensed income statement on investment? Round to one decimal place mover have to increase to meet the presidents 2. Road Bike Divisional performance analysis and evaluation Obj. 4 n ROI, 12.096 the vice president of operations of Free Ride Bike Company is evaluating the performance of data for the past year for each division are as follows: EXCEL TEMPLATE Road Bike Division Mountain Bike Division $1,728,000 $1,760,000 1,380,000 1.400,000 175,200 236,800 1,440,000 800,000 Instructions 1. Prepare condensed divisional income statements for the year ended December 31, 2047, as- suming that there were no support department allocations. 2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each division. Round percentages and the investment turnover to one decimal place. 3. If management's minimum acceptable return on investment is 10%, determine the residual income for each division. 4. Discuss the evaluation of the two divisions, using the performance measures deter- mined in parts (1), (2), and (3). 1. 14 15 16 Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 2047 Road Blke Division 17 18 19 20 Mountain Bike Division 21 22 23 24 Sales Cost of goods sold Gross profit Operating expenses Operating income Retum on Investment (ROI) Profit Margin x Investment Turnover Retum on Investment (ROI) Operating Income Sales Sales Invested Assets 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Road Bike Division ROI Mountain Bike Division ROI 41 B DE F G M Road Bike Division Mountain Bike Division Operating income Minimum acceptable return Residual income [Key essay answer here) 14 55 56 67 68