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Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,204,000 896,000 $ 308,000 $ 1,200,000 Stream Division
Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,204,000 896,000 $ 308,000 $ 1,200,000 Stream Division $ 1,804,000 1,293,000 $ 511,000 $ 1,460,000 Cost of goods sold and operating expenses Net operating income Average invested assets The company's hurdle rate is 7.51 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 11 percent. b. Operating income decreases by 11 percent. c. The company invests $250,000 in each division, an amount that generates $114,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.51 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Calculate return on investment (ROI) and residual income for each division for last year. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.) ROI Residual Income (Loss) River Division Stream Division % %
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