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 Cost of goods sold Gross margin Operating expenses Selling expenses Depreciation expense Operating income Nonoperating item $ 105,780 58,975 46,805 (2,690) (4,085) 40,030 Loss on sale of land Net income (3,300) $ 36,730 Assets Cash BOWMAN DIVISION Balance Sheet As of December 31, Year 2 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. $ 12,502 40,306 37,900 90,318 9,100 $ 190,126 $ 9,517 67,000 73,000 40,609 $ 190,126 d. Thornton has a desired ROI of 14 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 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. Complete this question by entering your answers in the tabs below. Required C Required D Required E Thornton has a desired ROI of 14 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 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. Note: Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45). New ROI % < Required C Required E > Show less A