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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

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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 River Division Division Sales revenue 1,200,000 800,000 Cost of goods sold and operating expenses 900,000 300,000 Net operating income 300,000 500,000 Average invested assets 1,200,000 800,000 The company's hurdle rate is 6 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 Division Stream Division ROI Residual Income (Loss)

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