For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expenses Depreciation expense Operating income Nonoperating item Loss on sale of land $ 106,980 59,875 47,105 (2,820) (4,015) 40,270 (3,900) Net income $ 36,370 Assets Cash Accounts receivable Merchandise inventory BOWMAN DIVISION Balance Sheet As of December 31, Year 2 $ 12,582 40,286 Equipment less accumulated depreciation Nonoperating assets Total assets Liabilities Accounts payable Notes payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity Required c. Calculate the ROI for Bowman. 37,700 90,438 9,200 $ 190,206 $ 9,527 70,000 72,000 38,679 $ 190,206 W d. Perez has a desired ROI of 14 percent. Headquarters has $86,000 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 16 percent. The other two divisions have investment opportunities that yield only 15 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.