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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 Division $1,207,000 882,000 $ 325,000 $1,070,000 Stream Division $1,807,000 1,300,000 $ 507,000 $1,460,000 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 9 percent. c. The company invests $252,000 in each division, an amount that generates $101,000 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: Reg 2A Req 2B Reg 20 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 ROI Stream Division 34.73% 30.37% Residual Income (Loss) ROG Reg 2A >

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