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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 invested
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 6.76 percent. Required: River Division $ 1,204,000 887,000 $317,000 $ 1,150,000 1. Calculate return on investment (ROI) and residual income for each division for last year. Stream Division $ 1,814,000 1,296,000 $ 518,000 $ 1,520,000 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 11 percent c. The company invests $256,000 in each division, an amount that generates $100,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.76 percent. Complete this question by entering your answers in the tabs below. Reg Reg 2A Req 28 Reg 2C Reg 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, (ie., 0.1234 should be entered as 12.34%.) River Division RO Residual Income (Loss) Stream Division Req2A > Complete this question by entering your answers in the tabs below. Req 1 Red 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 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 20 Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 11 percent.. Note: Enter your ROI answers as a percentage rounded to two decimal places, (1.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 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 $256,000 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 %.). Round your "Residual Income (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign. Show less & ROI Residual Income (Loss) River Division Stream Division <20 reg20> F Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 20 Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 4.76 percent. Note: Enter your ROI answers as a percentage rounded to two decimal places, (ie., 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 <20 less
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