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Coolbrook Company has the following information available for the past year: River Division $ 1,212,000 886,000 $ 326,000 $1,000,000 Stream Division $ 1,809,000 1,298,000
Coolbrook Company has the following information available for the past year: River Division $ 1,212,000 886,000 $ 326,000 $1,000,000 Stream Division $ 1,809,000 1,298,000 $ 511,000 $ 1,420,000 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets) The company's hurdle rate is 7.76 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 11 percent. b. Operating income decreases by 9 percent. c. The company invests $248,000 in each division, an amount that generates $106,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.76 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 20 Req 2D 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, (i.e., 0.1234 should be entered as 12.34 %.) RO River Division Stream Division 16 % The company's hurdle rate is 7.76 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 11 percent. b. Operating income decreases by 9 percent. c. The company invests $248,000 in each division, an amount that generates $106,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.76 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 11 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. River Divisin Stream Division ROI % % Residual Income (Loss). Show less A 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 11 percent. b. Operating income decreases by 9 percent. c. The company invests $248,000 in each division, an amount that generates $106,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.76 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 by 9 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. River Division Stream Division ROI % Residual Income (Loss) < Req2A Req 2C > Show less A The company's hurdle rate is 7.76 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 11 percent. b. Operating Income decreases by 9 percent. c. The company invests $248,000 in each division, an amount that generates $106.000 additional income per division. d. Coolbrook changes its hurdle rate to 5.76 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The Company Invests $248,000 in each division, an amount that generates $106,000 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%.). Round your "Residual Income (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign. River Division Stream Division ROI % % Residual Income (Loss) < Req 2B Req 2D > Show less A The company's hurdle rate is 7.76 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 11 percent. b. Operating Income decreases by 9 percent. c. The company Invests $248,000 in each division, an amount that generates $106,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.76 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Red 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 5.76 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 2C Req 20 > Show less A
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