Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods...
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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 assets The company's hurdle rate is 6.26 percent. Required: River Division $1,204,000 882,000 $ 322,000 $1,180,000 Stream Division $1,807,000 1,284,000 $ 523,000 $1,430,000 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 8 percent. b. Operating income decreases by 10 percent. c. The company invests $247,000 in each division, an amount that generates $109,000 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. Req 1 Req 2A Req 2B Req 2C Req 20 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, (i.e., 0.1234 should be entered as 12.34%.)) River Division Stream Division ROI % % Residual Income (Loss) www Movt 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 6.26 percent. Required: River Division $1,204,000 882,000 $ 322,000 $1,180,000 Stream Division $1,807,000 1,284,000 $ 523,000 $1,430,000 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 8 percent. b. Operating income decreases by 10 percent. c. The company invests $247,000 in each division, an amount that generates $109,000 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. Req 1 Req 2A Req 2B Req 2C Req 20 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, (i.e., 0.1234 should be entered as 12.34%.)) River Division Stream Division ROI % % Residual Income (Loss) www Movt
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