10 i Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.01 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows: Req 1 Saved Req 2A River Division $1,203,000 882,000 321,000 $1,170,000 a. Operating income increases by 11 percent. b. Operating income decreases by 11 percent. c. The company invests $245,000 in each division, an amount that generates $117,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.01 percent. Complete this question by entering your answers in the tabs below. Req 2B Req 2C Stream Division $1,817,000 1,296,000 $ 521,000 $1,440,000 Save & Exit Submit b. Operating income decreases by 11 percent. c. The company invests $245,000 in each division, an amount that generates $117,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.01 percent. 1 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B ROI Residual Income (Loss) Req 2C Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) River Division % Stream Division Req 1 Req 2D % Req 2A > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B ROI Residual Income (Loss) Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases by 11 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Req 2C % Req 2D Stream Division % Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B ROI Residual Income (Loss) Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 11 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Req 2C % Req 2D Stream Division % Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B ROI Residual Income (Loss) Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $245,000 in each division, an amount that generates $117,000 additional income per division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Round your "Residual Income (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign.) River Division Req 2C % Req 2D Stream Division % Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B ROI Residual Income (Loss) Req 2C Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 5.01 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division % Req 2D Stream Division