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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 assets River Division $1,205,000 888,000 $ 317,000 $1,030,000 Stream Division $1,804,000 1,290,000 $ 514,000 $1,410,000 The company's hurdle rate is 701 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 9 percent. b. Operating income decreases by 10 percent. C. The company invests $249,000 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 Req 2A Reg 28 Req 2c Reg 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, (l.e., 0.1234 should be entered as 12.34%.)) River Division Stream Division ROI % % Residual Income (Loss) Real Req 2A >
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