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Coolbrook Company has the following information available for the past year Stream Sales revenue Cost of goods sold and operating expenses Net operating income Average
Coolbrook Company has the following information available for the past year Stream Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division Division $ 1,218,000 1,808,000 $ 333,000 S 524,000 $ 1.100,000 1,470,000 885,000 1,284,000 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. (Enter your ROl answers as a percentage rounded to two decimal places, i.e., 0.1234 should be entered as 12.34%.)) ver Division Stream Division ROI Residual Income (Loss) 2. Recalculate ROl and residual income for each division for each independent situation that follows: (Enter your ROI answers as a percentage rounded to two decimal places, (i.e. 0.1234 should be entered as 12.34%.)) a. Operating income increases by 12 percent. ver Division ream Division ROI Residual Income (Loss) b. Operating income decreases by 11 percent er ream Division Division ROI Residual Income (Loss)
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