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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 28%. Rank the performance of each division for ROI and Residual Value. Problem 2 20 Points Central Division 10 .000 10,050.000 6.900.000 197,00 U10,000 LI Type your name here Division Sales Expenses Net Income Assets 12/01/1 Assets 1/1 Investment annual avg. Target Rate of Return 4,200,000 0.000 2.475.000 2610.000 Expenses Net Income Assets: 12/01/18 Assets 12/01/18 Lavestment av Target Rate of Return Expenses Net Income Assett 12/01/18 Asses: 12/31/18 Investment annual av Target Rate of Return 100 000 2025,000 ent Method 0 Net Income Investiment ve Net Income Investment- ROL uslave Simplified Return on Inw Net Income Tevestment annual ROL Dupont Method - Rauno Profit Margin Sales Net Income Profit Margin Method 10.800.000 Net Income Prof Margi Sales Net Income Prof Margin 6.900.000 Sales Lavestment av Investment annual Austur Investiment a l A turnover Dupont Method - Ren Central Division - ROL Residwal Income t East Division - ROU West Division - ROU Required for Residual income Netlacom Required return Residual income Division Performance Rank: Best Net Income Required retur Residual income War ROL - DuPont Method Residual East Division Central Division West Division Sales Expenses Net Income 10,800,000 10,050,000 Sales Expenses Net Income 6,900,000 5,197,500 Sales Expenses Net Income 3,810,000 3,180,000 Assets: 12/01/18 Assets: 12/31/18 Investment - annual avg. 2,475,000 2,610,000 Assets: 12/01/18 Assets: 12/31/18 Investment - annual avg. 4,200,000 5,100,000 Assets: 12/01/18 Assets: 12/31/18 Investment - annual avg. 1.800,000 2,025,000 Target Rate of Return 2ROON Target Rate of Return 28.00% Target Rate of Return Net Income Investment - annual avg ROI Simplified Return on investment Method Net Income Investment annual avg. ROI Net Income Investment - annual avg. ROI 17 1 10,800,000 Dupont Method - Retum on Investment Method Profit Margin Sales 6,900,000 Net Income Profit Margin Sales Net Income Profit Margin 3.810.000 Sales Net Income Profit Margin 26 10,000,000 Asset Tumover Sales Investment annual avg Asset turnover 6,900,000 Sales Investment - annual avg. Asset turnover 3,810,000 Sales Investment - annual avg. Asset turnover Dupont Method - Return on investment Central Division - RON East Division - ROI West Division - ROI Net Income Required return Residual income Residual income Net Income Required return Residual income Net Income Required return Residual income Division Performance Rank: Bestel, Worst ROL-DuPont Method Residual income

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