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 Stream Division Sales revenue $ 1,211,000 $ 1,811,000 Cost of goods sold and operating expenses 892,000 1,287,000 Net operating income $ 319,000 $ 524,000 Average invested assets $ 1,030,000 $ 1,480,000 The companys 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 9 percent. b. Operating income decreases by 12 percent. c. The company invests $243,000 in each division, an amount that generates $117,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.51 percent.