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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 anneto River Stream Division Division $1,203,000 $1,802,000 884,000 1,299,000 $ 319,000 $ 503,000 $1,020,000 $1,550,000 The company's hurdle rate is 7.01 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 10 percent. b. Operating income decreases by 12 percent. c. The company invests $243,000 in each division, an amount that generates $102,000 additional income per division d. Coolbrook changes its hurdle rate to 5.01 percent. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 20 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 Divinion ROI Residual Income (Loss) Hae Req 24 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 20 Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating Income increases by 10 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (1.0, 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division 1% Residual income (Loss) ROI ( Req1 Req 2B > Reg 1 Reg 2A Reg 28 Reg 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 12 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (l.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI % Residunt Income (Loss) Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 28 Req 2c Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $243,000 in each division, an amount that generates $102,000 additional income per division (Enter your ROI answers as a percentage rounded to two decimal places, (l.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 River Divinion Stream Division ROI Residual Income (L03) Reg 28 Reg 2D > Complete this question by entering your answers in the tabs below. Reg: Reg 2A Reg 28 Reg 2C Req 20 Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 5.01 percent. (Enter your Rot answers as a percentage rounded to two decimal places, (l.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stroom Division ROI % Residual Income (L.00)
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