You are provided with Sales, Expenses, and beginning & ending Assets values for the year. These are shown for three operating divisions: East, Central and West. Calculate the Residual Income, Simplified ROI, and DuPont ROI methods. Assume a target rate of return of 29%. Rank the performance of each division for ROI and Residual Value. Central Division West Division 11,520,000 10,720,000 Sales Expenses Net Income 7,360,000 5,544,000 Sales Expenses Net Income 4,064,000 3,392,000 2,640,000 2,784,000 Assets: 12/01/19 Assets: 12/31/19 Investment - annual avg. 4,480,000 5,440,000 Assets: 12/01/19 Assets: 12/31/19 Investment -annual avg. 1,920,000 2,160,000 2 East Division 3 Sales 4 Expenses 5 Net Income 6 7 Assets: 12/01/19 8 Assets: 12/31/19 9 Investment - annual avg. 10 11 Target Rate of Return 12 13 14 15 Net Income 16 Investment - annual avg. 17 ROI 18 29.00% Target Rate of Return 29.00% Target Rate of Return 29.00% Simplified Return on Investment Method Net Income Investment - annual avg. ROI Net Income Investment - annual avg. ROI 19 11,520,000 Dupont Method - Return on Investment Method Profit Margin Sales 7,360,000 Net Income Profit Margin 20 21 Sales 22 Net Income 23 Profit Margin 24 4,064,000 Sales Net Income Profit Margin 11,520,000 7,360,000 4,064,000 Asset Turnover Sales Investment - annual avg. Asset turnover Sales Investment - annual avg. Asset turnover 25 26 Sales 27 Investment - annual avg. 28 Asset turnover 29 30 31 East Division - ROI 32 Dupont Method - Return on Investment Central Division - ROI West Division - ROI 33 34 Net Income 35 Required return 36 Residual income 37 Residual Income Net Income Required return Residual income Net Income Required return Residual income 38 Division Performance - Rank: Best= 1, Worst =3 39 ROI - DuPont Method 40 Residual Income 41 A2