Check my work 10 Finch Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. 1 points eBook BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Sales revenue $107,280 Cost of goods sold 59,375 Gross margin 47,905 Operating expenses Selling expenses (2,800) Depreciation expense (4,145) Operating income 40,960 Nonoperating item Loss on sale of land (3,800) Net income $ 37,160 Print References BOWMAN DIVISION Balance Sheet As of December 31, Year 2 Assets 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 equity $ 12,492 40,336 37,900 90,308 9,300 $190,336 $ 9,517 67,000 77,000 36,819 $190,336 Required c. Calculate the ROI for Bowman. d. Finch 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. Required C Required D Required E Calculate the ROI for Bowman. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) ROI % Required Required D Required C Required D Required E Finch 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., 0.2345 should be entered as 23.45).) Show less New ROI % 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