PA10-1 (Algo) Calculating Return on Investment, Residual Income, Determining Effect of Changes in 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 $ 1,202,000 890,000 $ 312,000 $ 1,040,000 Stream Division $ 1,803,000 1,294,000 $ 509,000 $ 1,580,000 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 12 percent b. Operating income decreases by 10 percent c. The company invests $259,000 in each division, an amount that generates $100,000 additional income per division d. Coolbrook changes its hurdle rate to 5.76 percent Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 20 Req 2C Req 20 Calculate return on investment (ROI) and residual income for each division for last year. Note: Enter your ROI answers as a percentage rounded to two decimal places, (ie., 0.1234 should be entered as 12.34%) River Division Stream Division RO 30.00% 32.21 Residual Income (Loss) $ 231.290 $ 386,392 Req 2A >