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Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses River Division $ 1,219,000 894,000

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Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses River Division $ 1,219,000 894,000 Stream Division $ 1,803,000 1,298,000 Net operating income $ 325,000 $ 505,000 Average invested assets $ 1,060,000 $ 1,440,000 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. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Division Stream Division ROI Residual Income 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 11 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Division Stream Division ROI Residual Income b. Operating income decreases by 9 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Division Stream Division ROI Residual Income c. The company invests $250,000 in each division, an amount that generates $115,000 additional income per division. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Division Stream Division ROI Residual Income d. Coolbrook changes its hurdle rate to 4.26 percent. (Do not round your intermediate calculations Round "ROI" answers to 2 decimal places.) River Division Stream Division ROI Residual Income

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