Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,220,000 882,000 $ 338,000 $ 1,130,000 Stream Division $ 1,808,000 1,289,000 $ 519,000 $ 1,440,000 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 the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $241,000 in each division, an amount that generates $116,000 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 24 Req 2B Reg 20 Req 2D Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI ans percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) ROI River Division 29.91% $ 284,212 Stream Division 36.04 % S 450,456 Residual Income (Loss) Check my work $ Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Division $ 1,220,000 882,000 $ 338,000 $ 1,130,000 Division 1,808,000 1,289,000 519,000 1,440,000 $ $ 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 the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $241,000 in each division, an amount that generates $116,000 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 Reg 2A Req 2B Reg 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Operating in by 9 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should b 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI % % Residual Income (Loss) $ Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Division $ 1,220,000 882,000 $ 338,000 $ 1,130,000 Division 1,808,000 1,289,000 519,000 1,440,000 $ $ 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 the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $241,000 in each division, an amount that generates $116,000 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. Reg 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 8 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should t 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division % % Residual Income (Loss) ROI 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 $ 1,220,000 882,000 $ 338,000 $ 1,130,000 Stream Division $ 1,808,000 1,289,000 $ 519,000 $ 1,440,000 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 the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $241,000 in each division, an amount that generates $116,000 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. Reg 1 Reg 2A Reg 2B Req 2c Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The compan $241,000 in each division, an amount that generates $116,000 additional income per division. (Enter your R percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Round your "Residu answer to the nearest whole dollars. Loss amounts should be indicated with a minus sign.) River Division % Stream Division % ROI Residual Income (Loss) 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 $ 1,220,000 882,000 $ 338,000 $ 1,130,000 Stream Division $ 1,808,000 1,289,000 $ 519,000 $ 1,440,000 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 the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 8 percent. c. The company invests $241,000 in each division, an amount that generates $116,000 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. Reg 1 Reg 2A Req 2B Req 20 Reg 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook cl rate to 4.76 percent. (Enter your ROI answers as a percentage rounded to two decimal places, i.e., 0.1234 : as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division % Stream Division % ROI Residual Income (Loss)
