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help parts 1,2,a,b,c,d 1 Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net

image text in transcribed help parts 1,2,a,b,c,d
1 Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested asset River Division $1,203,000 885,000 $ 318,000 $1,000,000 Stream Division $1,813,000 1,292,000 $ 521,000 $1,430,000 bok The company's hurdle rate is 8.01 percent nt -nces 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 12 percent. b. Operating income decreases by 8 percent. c. The company invests $248,000 in each division, an amount that generates $105,000 additional income per divisi d. Coolbrook changes its hurdle rate to 6.01 percent. Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Req 2c Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decre by 8 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division 1% Residual Income (Loss) ROI % 1 Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested asset River Division $1,203,000 885,000 $ 318,000 $1,000,000 Stream Division $1,813,000 1,292,000 $ 521,000 $1,430,000 bok The company's hurdle rate is 8.01 percent nt -nces 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 12 percent. b. Operating income decreases by 8 percent. c. The company invests $248,000 in each division, an amount that generates $105,000 additional income per divisi d. Coolbrook changes its hurdle rate to 6.01 percent. Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Req 2c Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decre by 8 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division 1% Residual Income (Loss) ROI %

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