Coolbrook Company has the following information available for the past year River Division Stream Division Sales revenue $ 1,211,000 $ 1,811,000 Cost of goods sold and operating expenses 899,000 1,287,000 Net operating income $ 312,000 $ 524,000 Average invested assets $ 1,090,000 $ 1,420,000 The companys hurdle rate is 6 51 percent Required 1 Calculate return on investment (ROI) and residual income for each division for last year (Do not round your intermediate calculations Round ROI answers to 2 decimal places ) 2 Recalculate ROI and residual income for each division for each independent situation that follows a Operating income increases by 10 percent (Do not round your intermediate calculations Round ROI answers to 2 decimal places ) b Operating income decreases by 11 percent (Do not round your intermediate calculations Round ROI answers to 2 decimal places ) c The company invests $251,000 in each division, an amount that generates $111,000 additional income per division (Do not round your intermediate calculations Round ROI answers to 2 decimal places ) d Coolbrook changes its hurdle rate to 4 51 percent (Do not round your intermediate calculations Round ROI answers to 2 decimal places ) References eBook Resources Coolbrook Company has the following information available for the past year River Stream Division Division Sales revenue 1,211,000 1,811,000 Cost of goods sold and operating expenses 899,000 1,287,000 Net operating income 312,000 524,000 Average invested assets 1,090,000 1,420,000 The company's hurdle rate is 6 51 percent Required 1 Calculate return on investment (ROI) and residual income for each division for last year (Do not round your intermediate calculations Round ROI answers to 2 decimal places ) River Stream Division Division ROI 27 80 25 00 Residual Income 228,000 392,000 2 Recalculate ROI and residual income for each division for each independent situation that follows a Operating income increases by 10 percent (Do not round your intermediate calculations Round ROI answers to 2 decimal places ) River Stream Division Division ROI 27 50 30 60 B Residual Income 258,000 442,000

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Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,211,000 $ 1,811,000 Cost of goods sold

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

	River Division		Stream Division
Sales revenue	$	1,211,000	$	1,811,000
Cost of goods sold and operating expenses		899,000		1,287,000

Net operating income	$	312,000	$	524,000

Average invested assets	$	1,090,000	$	1,420,000

The companys hurdle rate is 6.51 percent.

Required:
1.	Calculate return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

2.	Recalculate ROI and residual income for each division for each independent situation that follows:

a.	Operating income increases by 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

b.	Operating income decreases by 11 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

c.	The company invests $251,000 in each division, an amount that generates $111,000 additional income per division. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

d.	Coolbrook changes its hurdle rate to 4.51 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

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Coolbrook Company has the following information available for the past year: River Stream Division Division Sales revenue 1,211,000 1,811,000 Cost of goods sold and operating expenses 899,000 1,287,000 Net operating income 312,000 524,000 Average invested assets 1,090,000 1,420,000 The company's hurdle rate is 6.51 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Stream Division Division ROI 27.80 25.00% Residual Income 228,000 392,000 2. Recalculate ROI and residual income for each division for each independent situation that follows a. Operating income increases by 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Stream Division Division ROI 27.50% 30.60 B Residual Income 258,000 442,000