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Coolbrook Company has the following information available for the past year River Division Sales revenue S 1,202,000 1,810,000 Cost of goods sold and operating expenses

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Coolbrook Company has the following information available for the past year River Division Sales revenue S 1,202,000 1,810,000 Cost of goods sold and operating expenses Net operating income Average invested assets 898,000 1,284,000 S 304,000 526,000 S 1,030,000 1,540,000 The company's hurdle rate is 7.51 percent 1. Calculate return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calculations. Round "RO" answers to 2 decimal places.) ROI Residual Income 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 9 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) ROI Residual Income b. Operating income decreases by 11 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) ROI Residual Income c. The company invests $258,000 in each division, an amount that generates $108,000 additional income per division. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Division Stream Division ROI Residual Income d. Coolbrook changes its hurdle rate to 5.51 percent. (Do not round your intermediate calculations. Round "ROi" answers to 2 decimal places.) River Division Stream Division ROI Residual Income

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