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Coolbrook Company has the following information available for the past year: River Stream Division Division Sales revenue $1, 220, 000 $1, 803, 000 Cost of

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Coolbrook Company has the following information available for the past year: River Stream Division Division Sales revenue $1, 220, 000 $1, 803, 000 Cost of goods sold and operating expenses 889 , 000 1, 289, 000 Net operating income $ 331, 000 $ 514, 000 Average invested assets $1, 180, 000 $1, 500, 000 The company's hurdle rate is 6.51 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 that follows: a. Operating income increases by 8 percent. b. Operating income decreases by 10 percent. c. The company invests $246,000 in each division, an amount that generates $104,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.51 percent. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 2C Req 2D 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 RO % % Residual Income (Loss)

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