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: River Division Stream Division $ 1,207,000 $ 1,804,000 Sales revenue Cost of goods sold and operating expenses 887,000 1,289,000 $ 320,000 $ 515,000 $ 1,020,000 $ 1,430,000 Net operating income Average invested assets The company's hurdle rate is 6.26 percent. Required 1. Calculate retun on investment (ROl) and residual income for each division for last year. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Division Stream Division ROI Residual Income 2. Recalculate ROl and residual income for each division for each independent situation that follows a. Operating income increases by 8 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) River Division Stream Divisiorn ROI Residual Income