Sales revenue BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Cost of goods sold Gross margin Operating expenses Selling expenses Depreciation expense Operating income Nonoperating item Loss on sale of land Net income 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 stockholders' equity Required c. Calculate the ROI for Bowman. $ 106,780 59,575 47,205 (2,690) (4,025) 40,490 (3,400) $ 37,090 $ 12,652 40,296 36,900 90,338 9,400 $ 189,586 $ 9,487 66,000 71,000 43,099 $ 189,586 d. Adams has a desired ROI of 12 percent. Headquarters has $89,000 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 14 percent. The other two divisions have Investment opportunities that yield only 13 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