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Coolbrook Company has the following information available for the past year River Division $ 1,205,000 Stream Division $1,814.000 Sales revenue Cost of goods sold and
Coolbrook Company has the following information available for the past year River Division $ 1,205,000 Stream Division $1,814.000 Sales revenue Cost of goods sold and operating expenses st operating income Average invested assets $ 8,00 31,130,000 523,000 $1,400,000 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 2. Recalculate ROI and residual income for the division for each independent situation at follows: 2. Operating income increases by 11 percent b. Operating income decreases by 12 percent c. The company invests $242,000 in each division an amount that generates $109.000 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. Rec 24 Reg 28 Rec 2C Reg 2D Calculate return on investment (ROI) and residual income for each division for last year. Enter your ROI answers a percentage rounded to two decimal places 1. 0.1234 soud be entered as 12.34.)) River Division Stream Division Residual income Loss Res >
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