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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

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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 assets River Stream Division Division $ 1,204,000 $ 1,801,000 897,000 1,294,000 $ 307,880 $ 507,000 $ 1,010,000 $1,450,000 The company's hurdle rate is 6.76 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 12 percent b. Operating income decreases by 9 percent c. The company invests $242,000 in each division, an amount that generates $114,000 additional income per division d. Coolbrook changes its hurdle rate to 4.76 percent. Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 28 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, (e., 0.1234 should be entered as 12.34%.)) River Division % Stream Division % ROI Residual income (Loss) rences Reg 1 Reg 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 12 percent. (Enter your ROI answers as a percentage rounded to two decimal places, i.e., 0.1734 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROL Residual income (Loss) Reg 1 Reg 2A Req 2B Reg 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 9 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division % Residual income (Loss) RON Req1 Req 2A Req 2B Reg 20 Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $242,000 in each division, an amount that generates $114,000 additional income per division (Enter your ROI answers as a percentage rounded to two decimal places, (ie, 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 ROL Residual Income (Loss) River Division % Stream Division 96 Reg 1 Reg 2A Reg 2B Reg 20 Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 4.76 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) % %

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