The sales, income from operations, and invested assets for each division of wren co. are as follows:

income from - invested assets
sales - operations - assets
division c $5,000,000 $630,000 $4,000,000
division d 6,800,000 760,000 3,900,000
division e 3,750,000 750,000 7,500,000
management has established a minimum rate of return for invested assets of 10%

1. determine the residual income (ri) for each division

2. based on residual income, what of the division is the most profitable

3. looking at these three divisions, does the division with the highest residual income have the highest rate of return on invested assests (roi)?

4. is it always true that the divsion with the highest ri will have the highest roi? why or why not?

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4. the condition requires that only one of the selected criteria be true for a record to be displayed.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

Gamegirl inc., has the following transactions during august. august 6 sold 76 handheld game devices for $230 each to ds unlimited on account, terms 2/10, net 60. the cost of the 76 game devices sold, was $210 each. august 10 ds unlimited returned six game devices purchased on 6th august since they were defective. august 14 received full amount due from ds unlimited. required: prepare the transactions for gamegirl, inc., assuming the company uses a perpetual inventory syste