Requiredc. Calculate the ROI for Bowman.d. Franklin has a desired ROI of 13 percent. Headquarters has $90,000 of funds to assign to its investment centers. The manager ofthe Bowman Division has an opportunity to invest the funds at an ROI of 15 percent. The other two divisions have investmentopportunities that yield only 14 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted byBowman.e. Based on the original data, calculate the original residual income. Also, calculate the new residual income based on informationprovided in Requirement d.Complete this question by entering your answers in the tabs below.Required CRequired DRequired ECalculate the ROI for Bowman. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)ROI%< Required CRequired D > Franklin Corporation operates three investment centers. The following financial statements apply to the investment center namedBowman Division.BOWMAN DIVISIONIncome StatementFor the Year Ended December 31, Year 2$106,28059,57546,705Sales revenueCost of goods soldGross marginOperating expensesSelling expensesDepreciation expense(2,650)(4,015)40,040Operating incomeNonoperating item( 4,900)$ 35,140Loss on sale of landNet incomeBOWMAN DIVISIONBalance SheetAs of December 31, Year 2AssetsCash$ 12,592Accounts receivableMerchandise inventoryEquipment less accumulated depreciationNonoperating assets40,45637,10090,3589,700Total assets$190,206Liabilities$ 9,567Accounts payableNotes payableStockholders' equity64,00078,00038,639Common stockRetained earningsTotal liabilities and stockholder's equity$190,206

In accounting, a ratio is used to determine the company's profitability from their business and help…

Required c. Calculate the ROI for Bowman. d. Franklin has a desired ROI of 13 percent. Headquarters has $90,000 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 15 percent. The other two divisions have investment opportunities that yield only 14 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. Calculate the ROI for Bowman. d. Franklin has a desired ROI of 13 percent. Headquarters has $90,000 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 15 percent. The other two divisions have investment opportunities that yield only 14 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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