Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets river Division $1,202,000 890,000 $312,000 $1,020,000 Stream Division $1,807,000 1.300,000 $ 507,000 $1,500,000 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 12 percent c. The company invests $255,000 in each division, an amount that generates $105,000 additional income per division d. Coolbrook changes its hurdle rote to 4.26 percent Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 28 Reg 20 Reg 20 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, Cl.e., 0.1234 should be entered as 12,34%) River Division Stream Division ROI Residual income (Loss) Reg 2A > Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $1,202,000 890,000 $ 312,000 $1,020,000 Stream Division $1,807,000 1,300,000 $ 507,000 $1,500,000 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 12 percent. c. The company invests $255,000 in each division, an amount that generates $105,000 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 RIGA Reg 28 Reg 20 Req 2D Recalculate Rot anal income for each division for the independent situation that follows: Operating income increases Reg by 9 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (1.0, 0.1234 should be entered as 12.34%). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI Residual income (1.048) Complete this question by entering your answers in the tabs below. Reg1 Reg 2A [eq 28 Reg 20 Reg 20 Recalculate ROI and residual income for each division for the independent situation that follows: Operating income decreases by 12 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (ie, 0.1234 should be entered as 12.34%). Loss amounts should be indicated with a minus sign) River Division Stream Division ROI Residual income (L03) Complete this question by entering your answers in the tabs below. Reg 2 Reg 28 Tes 20 Reg 20 Recalculate Rot and residual income for each division for the independent situation that follows: The company invests $255,000 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. 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 Red Income (Loss) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 26 Reg 20 Reg 20 Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 4.26 percent. (Enter your ROI answers as a percentage rounded to two decimal places, le 0.1234 should be entered as 1234% loss amounts should be indicated with a minus sign.) River Division Stream Division ROI Residual income (Loss)
