The financial results for the past two years for Ornamental Iron, a division of Iron Foundry Company, follow:

Required
1. Compute the division's profit margin, asset turnover, and return on investment for this year and last year. Beginning total assets for last year were $157,900. Round to two decimal places.
2. The desired return on investment for the division has been set at 12 percent. Compute Ornamental Iron's residual income for this year and last year.
3. The cost of capital for the division is 8 percent. Compute the division's economic value added for this year and last year.
4. Before drawing conclusions about this division's performance, what additional information would you want?

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Iron Foundry Company Ornamental Iron Division Balance Sheet December 3 Thls Year Last Year Assets Cash Accounts receivable S 5,000 3,000 8,000 32,000 600 128,300120 300 $173,900 163,900 10,000 30,000 600 Other current assets Plant assets Total assets Liabilties and Stockholders Equity Current liabilities Long-term liabilities Stockholders equity Total liabilities and stockholders equity $173,900 163900 $ 13,900 10,000 93,900 60,000 90,000 70,000 Iron Foundry Company Ornamental Iron Divislon Income Statement For the Years Ended December 31 This Last Year Sales Cost of goods sold $180,000 $160,000 90,000 100,000 Selling and administrative expenses 2750026,500 52 500 43,500 14,790 Operating income Income taxes 17850 34,650 28,710 After-tax operating income