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 assets River Division $ 1,203,000 893,000 $ 310,000 $1,140,000 Stream Division $1,807,000 1,298,000 $509,000 $1,490,000 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 11 percent. b. Operating income decreases by 8 percent. c. The company invests $251,000 in each division, an amount that generates $105,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.01 percent. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2c 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 29.83 % Stream Division 35.27 % ROI Residual Income (Loss) 6.968.910 11,590.410X Reg 1 Req 2A > X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases by 11 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) X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 8 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) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $251,000 in each division, an amount that generates $105,000 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%.). Round your "Residual Income (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign.) Show less River Division Stream Division ROI Residual Income (Loss) X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 5.01 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)
