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 $1,860,000 $1,950,000 $1,870,000
operating expenses 908,000 821,400 1,322,800
invested assets 6,800,000 5,700,000 3,800,000
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 service department charges.