PA10-1 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Asset, Hurdle Rate on Each [LO 10-4, 10-5] Coolbrook Company has the following information available for the past year: Stream Division Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,210,000 882,000 328.0DO $ 1.140,000 1,820,000 1,290,000 530.000 $ 1.520.000 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. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) River Stream Division Division ROI Residual Income (Loss) 2. Recalculate ROI and residual income for each division for each independent situation that follows: (Enter your ROI answers as a percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34%. a. Operating income increases by 8 percent River Division Stream Division ROI Residual Income (Loss) b. Operating income decreases by 10 percent. River Division Stream Division ROI % % Residual Income (Loss) c. The company invests $251,000 in each division, an amount that generates $120,000 additional income per division. River Division % Stream Division ROI % Residual Income (Loss) d. Coolbrook changes its hurdle rate to 5.76 percent. Stream Division River Division % ROI % Residual Income (Loss)