Question: please read the question carefully and provide a clear answer please Vernon Corporation operates three investment centers. The following financial statements apply to the investment




Vernon 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 $105,589 Cost of goods sold 58,275 Gross margin 47,385 Operating expenses Selling expenses (2,678) Depreciation expense (4,095) Operating income 40,630 Nonoperating item Loss on sale of land (4,680) Net income $ 36,038 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 $ 12,672 40,326 37,600 90,448 9,500 $190,546 $ 9,607 66,000 71, eee 43,939 $190,546 Required c. Calculate the ROI for Bowman. d. Vernon has a desired ROI of 11 percent. Headquarters has $87,000 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 e. Based on the original dato, calculate the original residual income Also, calculate the new residual income based on information provided in Requirement de Bowman Required Required D Required E Calculate the ROI for Bowman (Round your answer to 2 decimal places. (.e., 0.2345 should be entered as 23.45).) ROL % Required Required D Required E Vernon has a desired ROI of 11 percent. Headquarters has $87,000 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 Bowman. (Round your answer to 2 decimal places. (.e., 0.2345 should be entered as 23.45).) Show less Now ROI % 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 Now residual income
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