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Please take not of any instructions for decimal places Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods
Please take not of any instructions for decimal places
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 assets River Division $ 1,200,000 900,000 $ 300,000 $ 1,200,000 Stream Division $ 1,800,000 1,300,000 $ 500,000 $ 1,800,000 The company's hurdle rate is 6 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for each division for each independent situation that follows: a. Operating income increases by 10 percent. b. Operating income decreases by 10 percent. c. The company invests $250,000 in each division, an amount that generates $100,000 additional income per division. d. Coolbrook changes its hurdle rate to 10 percent. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 20 Reg 2D 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) Req 1 Reg 2A Req 2B Reg 20 Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases by 10 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI % % Residual Income (Loss) Req 1 Req 2A Reg 2B Req 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 10 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division % % ROI Residual Income (Loss) Reg 1 Req 2A Reg 2B Reg 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $250,000 in each division, an amount that generates $100,000 additional income per division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) Show less River Division Stream Division ROI % % Residual Income (Loss) Req 1 Req 2A Req 2B Reg 20 Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 10 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division % % ROI Residual Income (Loss)Step by Step Solution
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