Finch 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 Cost of goods sold $106,980 58,375 Gross margin Operating expenses Selling expenses Depreciation expense Operating income Nonoperating item 48,605 (2,770) (4,045) 41,790 Loss on sale of land (4,200) Net income $ 37,590 Assets BOWMAN DIVISION Balance Sheet As of December 31, Year 2 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 $ 12,642 40,406 36,300 90,428 9,900 $189,676 $ 9,477 64,000 76,000 40,199 $189,676 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 % Complete this question by entering your answers in the tabs below. Required C Required D Required E Finch has a desired ROI of 11 percent. Headquarters has $90,000 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).) New ROI % 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 Show less