Coolbrook Company has the following information available for the past year:

Sales revenue

Cost of goods sold and operating expenses

Net operating income

Averadeinvested assets

River Division

$ 1,213,000

889,000

$ 324,000

$ 1,080,000

Stream Division

$ 1,813,000

1,294,000

$ 519,000

$ 1,530,000

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 ROl and residual income for each division for each independent situation that follows:
3. Operating income increases by 11 percent.
4. Operating income decreases by 8 percent.
5. The company invests $252,000 in each division, an amount that generates $107,000 additional income per division.
6. Coolbrook changes its hurdle rate to 6.01 percent.

Complete this question by entering your answers in the tabs below.

Reg 1

Red 2A

Req 2B

Req 2C

Req 2D

Calculate return on investment (ROI) and residual income for each division for last year.

Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)