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Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,204,000 $ 1,807,000 Cost of goods sold

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

River Division Stream Division
Sales revenue $ 1,204,000 $ 1,807,000
Cost of goods sold and operating expenses 883,000 1,284,000
Net operating income $ 321,000 $ 523,000
Average invested assets $ 1,020,000 $ 1,460,000

The companys hurdle rate is 6.26 percent. Required: 2. Recalculate ROI and residual income for each division for each independent situation that follows: (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) a. Operating income increases by 8 percent.

River Division Stream Division
ROI % %
Residual Income (Loss)

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