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(0) Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,208,000 $ 1,817,000 Cost of goods

(0) Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,208,000 $ 1,817,000 Cost of goods sold and operating expenses 896,000 1,286,000 Net operating income $ 312,000 $ 531,000 Average invested assets $ 1,160,000 $ 1,540,000 The companys hurdle rate is 6.51 percent. Required: Calculate return on investment (ROI) and residual income for each division for last year. Recalculate ROI and residual income for each division for each independent situation that follows: Operating income increases by 9 percent. Operating income decreases by 11 percent. The company invests $244,000 in each division, an amount that generates $113,000 additional income per division. Coolbrook changes its hurdle raate to 4.51 percent

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