E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows:   Mutual Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $1,120,000   $1,160,000   $1,130,000   Operating expenses 603,400   486,800   854,000   Invested assets 4,100,000   3,400,000   2,300,000   The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Required: 1.  Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20Y8   Mutual Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $fill in the blank 5a830000e03afa0_1 $fill in the blank 5a830000e03afa0_2 $fill in the blank 5a830000e03afa0_3 Operating expenses fill in the blank 5a830000e03afa0_4 fill in the blank 5a830000e03afa0_5 fill in the blank 5a830000e03afa0_6 Operating income $fill in the blank 5a830000e03afa0_7 $fill in the blank 5a830000e03afa0_8 $fill in the blank 5a830000e03afa0_9

Question

Divisional Income Statements and Return on Investment Analysis

E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows:

 
Mutual Fund
Division
Electronic
Brokerage
Division
Investment
Banking
Division
Fee revenue $1,120,000   $1,160,000   $1,130,000  
Operating expenses 603,400   486,800   854,000  
Invested assets 4,100,000   3,400,000   2,300,000  

The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations.

Required:

1.  Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations.

E.F. Lynch Company
Divisional Income Statements
For the Year Ended June 30, 20Y8
  Mutual
Fund
Division
Electronic
Brokerage
Division
Investment
Banking
Division
Fee revenue $fill in the blank 5a830000e03afa0_1 $fill in the blank 5a830000e03afa0_2 $fill in the blank 5a830000e03afa0_3
Operating expenses fill in the blank 5a830000e03afa0_4 fill in the blank 5a830000e03afa0_5 fill in the blank 5a830000e03afa0_6
Operating income $fill in the blank 5a830000e03afa0_7 $fill in the blank 5a830000e03afa0_8 $fill in the blank 5a830000e03afa0_9
       
       
 

 

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