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 $1,219,000 889,000 $ 330,000 $1,180,000 Strean Division $1,805,000 1,293,000 $ 512,600 $1,430,000 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 follows: a. Operating income increases by 10 percent. b. Operating Income decreases by 11 percent. c. The company invests $248,000 in each division, an amount that generates $107.000 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 Reg 2 Reg 28 Reg 2c Reg 20 Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Reg 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 % ROI Residual Income (Loss) Stream Division % Req 2A > Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B 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, (l.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division % ROI Residual Income (Loss) Stream Division % Reg1 Reg 20 > c. The company invests $248,000 in each division, an amount that generates $107.000 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 Reg 2B Reg 2C Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 11 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division % Stream Division % ROI Residual income (Loss) Reg 2A Req20) Complete this question by entering your answers in the tabs below. Req 1 Req 2A Reg 2B Reg 2c Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $248,000 in each division, an amount that generates $107,000 additional Income per division. (Enter your ROI answers as a percentage rounded to two decimal places, (.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 Division % Stream Division % ROI Residual income (Loss) division, an amount that generates $107.000 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 Reg 28 Reg 2C Req 2D Recalculate Rot and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 4.26 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 Residual income (Loss) %
