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Coolbrook Company has the following information available for the past year: River Division $1,217,000 Stream Division $1,806,000 Sales revenue Cost of goods sold and operating

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Coolbrook Company has the following information available for the past year: River Division $1,217,000 Stream Division $1,806,000 Sales revenue Cost of goods sold and operating expenses 885,000 1,290,000 Net operating income $ 332,000 $ 516,000 Average invested assets $1,040,000 $1,500,000 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 the division for each independent situation that follows: a. Operating income increases by 11 percent. b. Operating income decreases by 9 percent. c. The company invests $243,000 in each division, an amount that generates $102,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.01 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 2C Req 20 Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 4.01 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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