Please Do not Give image format Stuart Corporation operates three investment centers. The following financial statements apply to the investment center namedBowman Division.For the Year Ended December 31, Year 2Sales revenue$105,68059,77545,905Cost of goods soldBOWMAN DIVISIONIncome StatementGross marginOperating expensesSelling expensesDepreciation expenseOperating incomeNonoperating item.Loss on sale of landNet incomeAssetsCashLiabilities(2,710)(4,065)39,130(4,900)Accounts payableNotes payable$ 34,230BOWMAN DIVISIONBalance SheetAs of December 31, Year 2Accounts receivable.Merchandise inventoryEquipment less accumulated depreciationNonoperating assetsTotal assetsStockholders' equityCommon stockRetained earningsTotal liabilities and stockholder's equity$ 12,50240,34637,10090,44810,400$190,796$9,59766,00073,00042,199$190,796 Requiredc. Calculate the ROI for Bowman.d. Stuart has a desired ROI of 14 percent. Headquarters has $91,000 of funds to assign to its investment centers. The manager of theBowman Division has an opportunity to invest the funds at an ROI of 16 percent. The other two divisions have investmentopportunities that yield only 15 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 C Required D Required 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

Ratio analysis used identify the business performance of the company. It is used to measure…

c. Calculate the ROI for Bowman. d. Stuart has a desired ROI of 14 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 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.

c. Calculate the ROI for Bowman. d. Stuart has a desired ROI of 14 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 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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

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