Walton 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 $ 105,680 Cost of goods sold 58,775 Gross margin 46,905 Operating expenses Selling expenses (2,830) Depreciation expense (4,205) Operating income 39,870 Nonoperating item Loss on sale of land (3,100) Net income $ 36, 770 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 $ 12,502 40,276 37,600 90,278 9,600 $190,256 $ 9,467 72,000 76,000 32,789 $190, 256 Required c. Calculate the ROI for Bowman. d. Walton has a desired ROI of 14 percent. Headquarters has $95,000 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