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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 $1,214,000 890,000 $ 324,800 $1,870,000 Stream Division $1,814,000 1,281,000 $ 533,000 $1,490,000 The company's hurdle rate is 7.51 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 11 percent. b. Operating income decreases by 8 percent. c. The company invests $259,000 in each division, an amount that generates $118.000 additional income per division. d. Coolbrook changes its hurdle rate to 5.51 percent. Complete this question by entering your answers in the tabs below. Reg 1 Red 2A Reg 28 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, (l.e., 0.1234 should be entered as 12.34%.)) River Division Stream Division ROI Residual Income (Loss)

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