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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 $1,207,000 895,000 $ 312,000 $1,150,000 Stream Division $1,809,000 1,281,000 $ 528,000 $1,460,000 The company's hurdle rate is 8.01 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 $241,000 in each division, an amount that generates $101,000 additional income per division d. Coolbrook changes its hurdle rote to 6.01 percent. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 2c Req 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%.)) Stream Division River Division % ROI Residual Income (Loss)

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