**Tan Corporation of Japan: Regional Division Financial Analysis** Tan Corporation of Japan operates two regional divisions with headquarters in Osaka and Yokohama. Below is the selected financial data for these divisions: | Division | Osaka | Yokohama | |--------------|---------------|--------------| | **Sales** | $10,500,000 | $35,000,000 | | **Net Operating Income** | $630,000 | $2,800,000 | | **Average Operating Assets** | $3,500,000 | $17,500,000 | **Required:** 1. **Return on Investment (ROI) Calculation:** - Calculate the ROI for each division. 2. **Residual Income Calculation:** - Determine the residual income for each division, given that the company’s minimum required rate of return is 15%. **Instructions:** Complete the calculations and enter your answers in the designated sections below. **ROI Input Section:** | Division | ROI (%) | |----------|---------| | Osaka | | | Yokohama | | Proceed to the next requirement by selecting "Required 2." Complete all steps for a comprehensive understanding of financial performance. ### Tan Corporation of Japan: Regional Divisions Analysis Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. The selected data for these divisions is presented below: #### Division Data | Division | Osaka | Yokohama | |------------|----------------|---------------| | **Sales** | $10,500,000 | $35,000,000 | | **Net Operating Income** | $630,000 | $2,800,000 | | **Average Operating Assets** | $3,500,000 | $17,500,000 | ### Required Tasks 1. **Compute the Return on Investment (ROI) for each division.** ROI is calculated as: \[ \text{ROI} = \left(\frac{\text{Net Operating Income}}{\text{Average Operating Assets}}\right) \times 100 \] 2. **Compute the Residual Income for each division, assuming the company’s minimum required rate of return is 15%.** Residual Income is calculated as: \[ \text{Residual Income} = \text{Net Operating Income} - (\text{Average Operating Assets} \times \text{Minimum Required Rate of Return}) \] ### Interactive Component To complete the analysis, enter your calculations in the tabs provided for each required task. #### Calculation Table | Division | Osaka | Yokohama | |------------|--------------|---------------| | **Residual Income** | ___ | ___ | Click on each required task to input your answers.