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Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,218,000 894,000 $ 324,000 $ 1,180,000 Stream Division
Sales revenue Coolbrook Company has the following information available for the past year: River Division $ 1,218,000 894,000 $ 324,000 $ 1,180,000 Stream Division $ 1,805,000 1,297,000 $ 508,000 $ 1,570,000 Cost of goods sold and operating expenses Net operating income Average invested assets. The company's hurdle rate is 6.76 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 11 percent. c. The company invests $256,000 in each division, an amount that generates $109,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.76 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 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 % 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 11 percent. c. The company invests $256,000 in each division, an amount that generates $109,000 additional d. Coolbrook changes its hurdle rate to 4.76 percent. 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 by 10 percent. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be enter Loss amounts should be indicated with a minus sign. ROI Residual Income (Loss) River Division Stream Division % % < Req 1 Req 2B > 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 11 percent. c. The company invests $256,000 in each division, an amount that generates $109,000 additional i d. Coolbrook changes its hurdle rate to 4.76 percent. 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 in by 11 percent. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entere Loss amounts should be indicated with a minus sign. ROI Residual Income (Loss) River Division Stream Division % % < Req 2A Req 2C > 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 11 percent. c. The company invests $256,000 in each division, an amount that generates $109,000 additional income p d. Coolbrook changes its hurdle rate to 4.76 percent. 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: The company invests $256,000 in each division, an amount that generates $109,000 additional income per division. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.3 Round your "Residual Income (Loss)" answer to the nearest whole dollars. Loss amounts should be indicated with a m sign. ROI Residual Income (Loss) River Division % Stream Division % < Req 2B Req 2D > Show 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 11 percent. c. The company invests $256,000 in each division, an amount that generates $109,000 additional d. Coolbrook changes its hurdle rate to 4.76 percent. 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: Coolbrook rate to 4.76 percent. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be enter Loss amounts should be indicated with a minus sign. River Division Stream Division ROI % % Residual Income (Loss) < Req 2C Req 2D >
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