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 River Division $1,211,000 889,000 $ 322,000 $1,090,000 Stream Division $1,807,000 1,292 000 $ 510,000 $1,470,000 The company's hurdle rate is 6.26 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: a. Operating income increases by 10 percent. b. Operating Income decreases by 9 percent. c. The company invests $255,000 in each division, an amount that generates $104,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.26 percent. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Req 2c Reg 2D 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, (.e., 0.1234 should be entered as 12.34%.)) River Division Stream Division ROI Residual Income (Loss) RO Roq 2A > 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: a. Operating income increases by 10 percent b. Operating income decreases by 9 percent c. The company invests $255,000 in each division, an amount that generates $104,000 additional income per division d. Coolbrook changes its hurdle rate to 4.26 percent. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 2C Reg 20 Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases by 10 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (1.0, 0.1234 should be entered as 12.34%), Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI Residual income (L03) ( Req1 Req 28 > nces 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: a. Operating income increases by 10 percent. b. Operating income decreases by 9 percent c. The company invests $255,000 in each division, an amount that generates $104,000 additional income per division d. Coolbrook changes its hurdle rate to 4 26 percent. Complete this question by entering your answers in the tabs below. Reet Reg 2 Req 20 Reg 20 Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 9 percent (Enter your ROI answers as a percentage rounded to two decimal places, (1.0, 0.1234 should be entered as 12.34%). Loss amounts should be indicated with a minus sign) River Division Stream Division ROI Residual income (Low) Req 2A Req 20 > 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: a. Operating income increases by 10 percent b. Operating income decreases by 9 percent. c. The company invests $255,000 in each division, an amount that generates $104,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.26 percent. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 2C Reg 20 Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $255,000 in each division, an amount that generates $104,000 additional income per division (Enter your ROI answers as a percentage rounded to two decimal places, We 0.1234 should be entered as 12134%). Round your "Residual Income (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign.) Show less River Division Stream Division ROI Residual income (Loss) 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: a. Operating Income increases by 10 percent. b. Operating income decreases by 9 percent. c. The company invests $255,000 in each division, an amount that generates $104,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.26 percent. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 2c Reg 20 Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 4.26 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 Stream Division % ROI Residual income (Loss)
