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Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average
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 6 percent. Required: River Division $ 1,200,000 900,000 $ 300,000 $ 1,200,000 1. Calculate return on investment (ROI) and residual income for each division for last year. Stream Division 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 10 percent. b. Operating income decreases by 10 percent. $ 1,800,000 1,300,000 $ 500,000 $ 1,800,000 c. The company invests $250,000 in each division, an amount that generates $100,000 additional income per division. d. Coolbrook changes its hurdle rate to 10 percent. Complete this question by entering your answers in the tabs below. Req 1 Reg. 2A Req 20 Req 2C Req 20 Calculate return on investment (ROI) and residual income for each division for last year. Note: Enter your ROI answers as a percentage rounded to two decimal places, (1.e., 0.1234 should be entered as 12.34%) Stream Division River Division ROI 25.00% Residual Income (Loss) $ 228,000 $ 27.77% 392,000 Req 2A > Coolbrook Company has the following information available for the past year: River Division $ 1,200,000 900,000 $ 300,000 $ 1,200,000 Stream Division $ 1,800,000 1,300,000 $ 500,000 $ 1,800,000 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets. The company's hurdle rate is 6 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 10 percent. b. Operating income decreases by 10 percent. c. The company invests $250,000 in each division, an amount that generates $100,000 additional income per division. d. Coolbrook changes its hurdle rate to 10 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases by 10 percent. Note: 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. RO Residual Income (Loss) River Division. Stream Division % % Show less A Coolbrook Company has the following information available for the past year: River Division $ 1,200,000 900,000 $ 300,000 $ 1,200,000 Stream Division $ 1,800,000 1,300,000 $ 500,000 $ 1,800,000 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 6 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 10 percent. b. Operating income decreases by 10 percent. c. The company invests $250,000 in each division, an amount that generates $100,000 additional income per division. d. Coolbrook changes its hurdle rate to 10 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases i by 10 percent. Note: 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. ROI Residual Income (Loss) River Division Stream Division % % < Req 2A Req 2C > Show less A mpany has te Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 6 percent. Required: River Division $ 1,200,000 900,000 $ 300,000 $ 1,200,000 1. Calculate return on investment (ROI) and residual income for each division for last year. Stream Division $ 1,800,000 1,300,000 $ 500,000 $ 1,800,000 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 10 percent. b. Operating income decreases by 10 percent. ces c. The company invests $250,000 in each division, an amount that generates $100,000 additional income per division. d. Coolbrook changes its hurdle rate to 10 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $250,000 in each division, an amount that generates $100,000 additional income per division. Note: 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. Show less A River Division Stream Division. ROI % % Residual Income (Loss) Coolbrook Company has the following information available for the past year: River Division $ 1,200,000 900,000 $ 300,000 $ 1,200,000 Stream Division $ 1,800,000 1,300,000 $ 500,000 $ 1,800,000 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 6 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 10 percent. b. Operating income decreases by 10 percent. c. The company Invests $250,000 in each division, an amount that generates $100,000 additional income per division. d. Coolbrook changes its hurdle rate to 10 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrck changes its hurdle rate to 10 percent. Note: 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. ROI Residual Income (Loss) River Division Stream Division %
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