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: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested ssets River Division $1,202,000 894,000 $ 308,000 $1,130,000 Stream Division $1,812,000 1,292,000 $ 520,000 $1,440,000 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 8 percent. b. Operating income decreases by 10 percent. c. The company invests $240,000 in each division, an amount that generates $108,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.01 percent