Sarang Music (SM) has two divisions: South and North. SM has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business follows: Sales revenue Income South $1,000 200 North $5,000 390 Investment (beginning of year) R&D expenditures 2,000 Current liabilities (beginning of year) 200 500 3,000 200 400 Required: Evaluate the performance of the two divisions assuming SM uses residual income. (Enter answers in thousands of dollars. Negative amounts should be indicated by a minus sign.) Divisions Residual Income East West