Campbell Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. BOWMAN DIVISION Income Statement For the Year Ended December 31, 2018 Sales revenus $196,888 Cost of goods sold 58.675 Gross margin 49.25 Operating expenses Selling expenses (2,770) Depreciation expense (4,175) Operating income 41,260 Nonoperating item Loss of sale of land (4,280) Net income $37.06e BOWMAN DIVISION Balance Sheet As of December 31, 2018 $ 12.562 40.396 36,280 10. see $199.836 Cash 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 cquity $ 9.597 65, ese 75, ese 40,439 $196,836 Required c. Calculate the ROI for Bowman d. Campbell has a desired ROI of 13 percent. Headquarters has $87,000 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 14 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 Required D Required E Calculate the ROI for Bowman. (Round your answer to 2 decimal places. i.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 Campbell has a desired ROI of 13 percent. Headquarters has $87,000 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 14 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., .2345 should be entered as 23.45).) Show less New RI | Required C RequiredE > Complete this question by entering your answers in the tabs below. Required C 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 (Required D Required E
