BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expenses Depreciation expense Operating income Nonoperating item Loss on sale of land Net income $106,080 59,375 46,705 (2,710) (4,065) 39,930 (4,400) $ 35,530 Assets Cash BOWMAN DIVISION Balance Sheet As of December 31, Year 2 Accounts receivable Merchandise inventory Equipment less accumulated depreciation Nonoperating assets Total assets Liabilities Accounts payable Notes payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholder's equity $ 12,492 40,306 36,400 90,308 10,100 $189,606 $ 9,487 70,000 77,000 33,119 $189,606 Required c. Calculate the ROI for Bowman. d. Walton has a desired ROI of 11 percent. Headquarters has $94,000 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 13 percent. The other two divisions have investment opportunities that yield only 12 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. (1.e., 0.2345 should be entered as 23.45).) ROI %