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Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $1,208,000 880,000 $ 328,600 $1,070,000 Stream Division $1,806,000

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Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $1,208,000 880,000 $ 328,600 $1,070,000 Stream Division $1,806,000 1,300,000 $ 506,000 $1,580,000 The company's hurdle rate is 6.26 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 9 percent. b. Operating income decreases by 11 percent. c. The company invests $243,000 in each division, an amount that generates $106,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.26 percent. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 2C Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $243,000 in each division, an amount that generates $106,000 additional income per division. (Enter your ROI answers as a percentage rounded to two decimal places, (.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)

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