BOWMAN DIVISION
Income Statement
For the Year Ended December 31, Year 2
Sales revenue	$	107,280
Cost of goods sold		58,975
Gross margin		48,305
Operating expenses
Selling expenses		(2,690	)
Depreciation expense		(4,085	)
Operating income		41,530
Nonoperating item
Loss on sale of land		(3,000	)
Net income	$	38,530

BOWMAN DIVISION
Balance Sheet
As of December 31, Year 2
Assets
Cash	$	12,612
Accounts receivable		40,376
Merchandise inventory		36,100
Equipment less accumulated depreciation		90,428
Nonoperating assets		9,200
Total assets	$	188,716
Liabilities
Accounts payable	$	9,557
Notes payable		66,000
Stockholders equity
Common stock		78,000
Retained earnings		35,159
Total liabilities and stockholder's equity	$	188,716

Required

Calculate the ROI for Bowman.

Finch has a desired ROI of 12 percent. Headquarters has $91,000 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 14 percent. The other two divisions have investment opportunities that yield only 13 percent. Calculate the new ROI for Bowman division, if 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.

Complete this question by entering your answers in the tabs below. Calculate the ROI for Bowman. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Finch has a desired ROI of 12 percent. Headquarters has $91,000 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 14 percent. The other two divisions have investment opportunities that yield only 13 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) 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.)