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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Divisional Income Statements and
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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