Required information Problem 14-63, 14-64 (Algo) (LO 14-1, 2, 3, 4) Bentler Industries provides high-technology navigation and communication equipment for the aerospace and shipbuilding industries. It is organized into two divisions, Aeronautics and Marine. The division presidents are given wide decision- making authority that covers operations, marketing, and asset acquisition and disposal. Bentler evaluates the division presidents on, among other things, ROI in their respective divisions. ROI is based on after-tax divisional income and beginning-of-year assets. Divisional income includes allocated corporate overhead. For the most recent year (year 3), data from the two divisions shows the following: Marine Allocated corporate overhead ($000) Cost of sales Other general and administrative costs R&D costs Sales Total assets (January 1, Year 3) The tax rate applied at Bentler is 20 percent. Aeronautics Division $ 15,800 19,300 990 Division $13,000 14,400 2,050 17,400 56,600 4,800 46,000 29,200 37,200 Problem 14-63 (Algo) Divisional Income, ROI, and Residual Income (LO 14-1, 2, 3) Required: a. Compute divisional income for year 3 for each of the divisions. b1. Evaluate the two divisions based on the information from the divisional income computed. b2. In terms of divisional income, which division performed better? c1. Compute ROI for year 3 for each of the divisions. c2. Which division performed better? d1. Compute residual income for year 3 for each of the divisions. Bentler uses a cost of capital of 12 percent. d? Which division nerformed hotter? < Prev 2 of 10 Next Required Information Required: a. Compute divisional income for year 3 for each of the divisions. b1. Evaluate the two divisions based on the information from the divisional income computed. b2. In terms of divisional income, which division performed better? c1. Compute ROI for year 3 for each of the divisions. c2. Which division performed better? d1. Compute residual income for year 3 for each of the divisions. Bentler uses a cost of capital of 12 percent d2. Which division performed better? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Req D1 Req D2. Compute divisional Income for year 3 for each of the divisions. Note: Enter your answers in thousands of dollars. Aeronautics Division Marine Division Divisional income Req A Req B1 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Req Evaluate the two divisions based on the information from the divisional income Note: Enter your answers as a percentage rounded to 2 decimal places (i.e., 32. Aeronautics Division Marine Division % Gross margin Operating margin Profit margin % do do do % % % % do do do < Req A Req B2 X c2. Which division performed better? d1. Compute residual income for year 3 for each of the divisions. Bentler uses a c d2. Which division performed better? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Req D1 Compute ROI for year 3 for each of the divisions. Note: Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.12)" ROI Aeronautics Division Marine Division % % < Req B2 Req C2 > Complete this question by entering your answers in the tab Req A Req B1 Req B2 Req C1 Req C2 Compute residual income for year 3 for each of the divisions. Bentle Note: Enter your answers in thousands of dollars. Negative amounts Aeronautics Division Marine Division Residual income < Req C2