Thornton 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 $106,689 Cost of goods sold 59,575 Gross margin 47,105 Operating expenses Selling expenses (2,790) Depreciation expense (4.185) Operating income 40,130 Nonoperating iten LOSS on sale of land (3,800) Net Income $36,330 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 $ 12,622 40,486 36,400 90,388 19,800 $190,536 $ 9,497 67,000 75,000 39,039 $190,536 Required c. Calculate the ROI for Bowman d. Thornton has a desired ROI of 11 percent Headquarters has $91,000 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 Complete this question by entering your answers in the tabs below. Required 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).) BOL % Required D > Complete this question by entering your answers in the tabs below. Required Required D Required E Thornton has a desired ROI of 11 percent. Headquarters has $91,000 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 V adopted by Bowman, (Round your answer to 2 decimal places, (le, 0,2345 should be entered as 23.45).) Show less New ROL Complete this question by entering your answers in the tabs below. 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