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Divisional Income Statements and Retum on fnvestment Analysis E.F. Lynch Company is a
diversified investment company with three operating divisions orgjnized as investment centers,
Condensed data taken fram the records of the three divisions for the year ended June 30, 20 V8,
are as follows: The manapement of E.F. Lynch Company is evaluating each diviaion 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
deportmuentaliocations.Using the DuPont formula for return on investment, compute the profit
margin, investment turnover, and return on investment for each livision. Round your answers to
one decimal place.

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