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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
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 $ 1,203,000 885,000 $ 318,000 $ 1,180,000 Stream Division 1,820,000 1,285,800 535,000 1,470,800 $ $ The company's hurdle rate is 7.76 percent. Reg 1 Req 2A Req 2B Reg 2C 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, (i.e., 0.1234 should be entered as 12.34%.)) River Division Stream Division ROI % % Residual Income (Loss) Req 1 Reg 2A Req 2B Reg 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases 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 1 Reg 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 9 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 % % Residual Income (Loss) ROI Reg 1 Reg 2A Req 2B Reg 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $258,000 in each division, an amount that generates $116,000 additional income per division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.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) Req 1 Reg 2A Req 2B Reg 2C Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 5.76 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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