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Coolbrook Company has the following information available for the past year: Stream Division Sales revenue Cost of goods sold and operating expenses Net operating income
Coolbrook Company has the following information available for the past year: Stream Division Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,212,000 $ 1,803,000 $328,000 $ 514,000 $ 1,000,000 $ 1,510,000 884,000 1,289,000 The company's hurdle rate is 6.76 percent. Required 1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROl answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34% River DIvision Stream DIvision ROI Residual Income (Loss) 2. Recalculate ROl and residual income for each division for each independent situation that follows: (Enter your ROl answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34% a. Operating income increases by 10 percent. River DIvision Stream DIvision ROI Residual Income (Loss)
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