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KVS Coolbrook Company has the following information available for the past year: River DivisionStream DivisionSales revenue$1,200,000$1,800,000Cost of goods sold and operating expenses 900,000 1,300,000 Net

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

River DivisionStream DivisionSales revenue$1,200,000$1,800,000Cost of goods sold and operating expenses 900,000 1,300,000 Net operating income$300,000$500,000 Average invested assets$1,200,000$1,800,000

The companys hurdle rate is 6 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 1 decimal place.) River DivisionStream DivisionROI__________%____________%Residual Income$__________$____________

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 DivisionStream DivisionROI__________%____________%Residual Income$__________$____________ b.Operating income decreases by 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 1 decimal place.) River DivisionStream DivisionROI__________%____________%Residual Income$__________$____________ c.The company invests $250,000 in each division, an amount that generates $100,000 additional income per division. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River DivisionStream DivisionROI__________%____________%Residual Income$__________$____________ d.Coolbrook changes its hurdle rate to 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 1 decimal places.) River DivisionStream DivisionROI__________%____________%Residual Income$__________$____________

please provide correct solution.

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