Fanning 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, Year 2 Sales revenue $ 105,880 Cost of goods sold 58,375 Gross margin 47,505 Operating expenses Selling expenses (2,750) Depreciation expense (4,105) Operating income 40, 650 Nonoperating item Loss on sale of land (3,700) Net income $ 36,950 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 $ 12,572 40, 396 37,200 90, 298 10,400 $190,866 $ 9,457 67,000 78,000 36,409 $190,866 Required c. Calculate the ROI for Bowman. d. Fanning has a desired ROI of 11 percent. Headquarters has $88,000 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. (i.e., 0.2345 should be entered as 23.45).) ROI % Required C Required D Required E Fanning has a desired ROI of 11 percent. Headquarters has $88,000 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. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Show less A New ROI % 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