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 River Division $1,210,000 894,000 $ 316,000 $1,200,000 Stream Division $1,805,000 1,284,000 $ 521,000 $1,440,000 The company's hurdle rate is 6.26 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 follbws: a. Operating income increases by 11 percent. b. Operating income decreases by 11 percent. c. The company invests $252,000 in each division, an amount that generates $106,000 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. Reg 1 Req 2A Req 28 Req 2c Req 2D Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI a percentage rounded to two decimal places, (e., 0.1234 should be entered as 12.34%.)) River Division Stream Division % % ROI Residual Income (Loss) The company's hurdle rate is 6.26 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 11 percent. b. Operating income decreases by 11 percent. c. The company invests $252,000 in each division, an amount that generates $106,000 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. Reg 1 Req 2A Req 2B Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating by 11 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (.e., 0.1234 shou 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI Residual Income (Loss) The company's hurdle rate is 6.26 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 11 percent. b. Operating income decreases by 11 percent. c. The company invests $252,000 in each division, an amount that generates $106,000 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. Req1 Reg 2A Req 2B Req 2c Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating by 11 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 shou 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI % % Residual Income (Loss) The company's hurdle rate is 6.26 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 11 percent. b. Operating income decreases by 11 percent. c. The company invests $252,000 in each division, an amount that generates $106,000 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. Reg 1 Req 2A Req 2B Req 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The comp $252,000 in each division, an amount that generates $106,000 additional income per division. (Enter your percentage rounded to two decimal places, (l.e., 0.1234 should be entered as 12.34%.). Round your "Resi (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign.) River Division Stream Division % % ROI Residual Income (Loss) The company's hurdle rate is 6.26 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 11 percent. b. Operating income decreases by 11 percent. c. The company invests $252,000 in each division, an amount that generates $106,000 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 Reg 2A Req 2B Req 2c Reg RD Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook rate to 4.26 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.123 as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division % Stream Division % ROI Residual Income (Loss)
