PA10-1 (Algo) Calculating Return on Investment, Residual Income, Determining Effect of Chang Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] Coolbrook Company has the following information available for the past year: River Division Sales revenue $1,214,000 Cost of goods sold and operating expenses 894,000 Stream Division $1,818,000 1,290,000 Net operating income $ Average invested assets 320,000 $1,060,000 $ 528,000 $1,490,000 The company's hurdle rate is 7.01 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 9 percent. b. Operating income decreases by 11 percent. c. The company invests $243,000 in each division, an amount that generates $109,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.01 percent.