18 Solomon Corporation operates three Investment centers. The following financial statements apply to the investment center named Bowman Division BORCUN DIVISION Income Statement Tor the Year Ended December 31, 2018 Sales revenue $107,280 Cost of goods sold 58, 775 Gross margin 48,505 Operating expenses Selling expenses (2,780) Depreciation (4,135) expense Operating income 41,590 Nonoperating item Loss of sale of (4,000) Net Income $ 37.590 BOWMAN DIVISION Balance Sheet As of December 31, 2018 Assets Cash $ 12,582 Accounts receivable 40, 446 Merchandise inventory 37,300 Equipment less accumulated 90,298 depreciation Nonoperating assets 9,600 Total assets $190,226 Liabilities Accounts payable $ 9,607 Notes payable 68,000 Stockholders equity Common stock 76,000 Retained earnings 36,619 Total liabilities and stockholder's $190.226 equity Required c. Calculate the ROI for Bowman 3. Solomon has a desired ROI of 14 percent. Headquarters has $95,000 of funds to assign to its Investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 15 percent The other two divisions have investment opportunities that yield only 15 percent. Calculate the new ROI For Bowman vision, the Investment opportunity is adopted by Bowman Based on the original data, calculate the original residual income. Also, calculate the new residual income based on Information provided in Requirement d. Required c. Calculate the ROI for Bowman. d. Solomon has a desired ROI of 14 percent. Headquarters has $95,000 of funds to assign to its investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 16 percent. The other two divisions have investment opportunities that yield only 15 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman. e. Based on the original data, calculate the original residual income. Also, calculate the new residual income based on information provided in Requirement d. Complete this question by entering your answers in the tabs below. Required C Required D Required E Calculate the ROI for Bowman. (Round your answer to 2 decimal places. (l.e., .2345 should be entered as 23.45).) ROI % Required Required D > Complete this question by entering your answers in the tabs below. Required C Required D Required E Solomon has a desired ROI of 14 percent. Headquarters has $95,000 of funds to assign to its investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 16 percent. The other two divisions have investment opportunities that yield only 15 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman. (Round your answer to 2 decimal places. (l.e., .2345 should be entered as 23.45).) Show less New ROI Required C Required E > Complete this question by entering your answers in the tabs below. Required Required D Required E Based on the original data, calculate the original residual income. Also, calculate the new residual income based on information provided in Requirement d. (Round your final answer to nearest whole dollar.) Original residual income New residual income