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 $1,202,000 $1,807,000 890,000 1.300.000 $ 312,000 $507,000 $1,020,000 $1,500,000 es 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 9 percent. b. Operating income decreases by 12 percent c. The company invests $255,000 in each division, an amount that generates $105.000 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 Red 2A Reg 28 Reg 20 Req 20 Calculate return on investment (ROI) and residual income for each division for last year (Enter your Rot answers as a percentage rounded to two decimal places, le., 0.1234 should be entered as 12.34%)) River Division Stream Division ROL Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Division $1,202,800 890,000 $312,000 $1,020,000 Division $1,807,880 1,300,000 $507,000 $1,500,000 DOR 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 9 percent. b. Operating income decreases by 12 percent. c. The company invests $255,000 in each division, an amount that generates $105.000 additional income per division d. Coolbrook changes its hurdle rate to 4.26 percent. rences Complete this question by entering your answers in the tabs below. Reg 1 Reg 21 Rec 20 Reg 20 Reg 20 Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases by 9 percent. (Enter your ROI answers as a percentage rounded to two decimal places, le, 0.1234 should be entered as 12.34%). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI Residual income (LOS) Reg1 Reg 20 > Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Division Division $1,202,000 $1,807,000 890,000 1,300,000 $ 312,000 $ 507,000 $1,020,000 $1,500,000 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 9 percent. b. Operating income decreases by 12 percent. c. The company invests $255,000 in each division, an amount that generates $105,000 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 2A Reg 28 Reg 2C Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 12 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)
