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managerial accouting need help with 1-d Coolbrook Company has the following information available for the past year Sales revenue Cost of goods sold and operating
managerial accouting need help with 1-d
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 assets River Division $ 1,201,600 885,000 $ 316,000 51,050,000 Stream Division $ 1,889,000 1,290,000 $ 519,000 $ 1,480,000 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. 2. Recalculate ROI and residual income for the division for each independent situation that follows: a. Operating income increases by 11 percent b. Operating income decreases by 10 percent. c. The company invests $253.000 in each division, an amount that generates $110,000 additional income per division d. Coolbrook changes its hurdle rate to 451 percent Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 20 Reg 20 Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROT-answers as a percentage rounded to two decimal places Ch. 0.1234 should be entered as 12.31%)) River Division Stream Division ROI 29 30% 35061% Residual income (100) 67 14.800 Reg 2A > Step by Step Solution
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