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Please provide all responses by typing. Please be very clear in your responses, and bold...

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Accounting

Please provide all responses by typing. Please be very clear in your responses, and bold each step so it is very clear. Please only respond if you are confident in your response. Please provide all steps and show all work.

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Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow: Sales Operating income Average operating assets Division Perth Darwin $ 9,000,000 $ 20,000,000 630,000 1,800,000 3,000,000 10,000,000 Required: 1. Compute the ROI for each division. Perth Darwin % ROI % 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division. Perth Darwin Residual income 3. Is the Darwin Division's greater residual income an indication that it is better managed? O Yes O No

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