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Coolbrook Company has the following information available for the past year Stream River Division Division Sales revenue Cost of goods sold and operating expenses Net
Coolbrook Company has the following information available for the past year Stream River Division Division Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets $ 1,200,000 $ 1,800,000 1,300,000 $ 300,000 500,000 1,200,000 $ 1,800,000 900,000 The company's hurdle rate is 6 percent. Required 1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROIl answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) River Division Stream Divisionn ROI Residual Income (Loss) 2. Recalculate ROI and residual income for each division for each independent situation that followS: (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) a. Operating income increases by 10 percent. River Division Stream Division ROI Residual Income (Loss)
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