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 The company's hurdle rate is 6.01 percent. River Division $ 1,215,000 883,000 $ 332,000 $ 1,020,000 Stream Division $ 1,801,000 1,280,000 $ 521,000 $ 1,530,000 Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 10 percent. b. Operating income decreases by 11 percent. c. The company invests $251,000 in each division, an amount that generates $112,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.01 percent.

Coolbrook Company has the following information avallable for the past year: The company's hurdle rate is 6.01 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 10 percent. b. Operating income decreases by 11 percent. c. The company invests $251,000 in each division, an amount that generates $112,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.01 percent