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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 | |
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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.
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