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Stream Division Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,205,000 $ 1,816,000 $ 308,000

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Stream Division Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,205,000 $ 1,816,000 $ 308,000 $ 525,000 S 1,030,000 S 1,460,000 897,000 1,291,000 The company's hurdle rate is 7.01 percent. Required: 1. Calculate return on investment (ROl) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places. (i.e., 0.1234 should be entered as 12.34%.)) River Division Stream Division ROI Residual Income (Loss) 2. Recalculate ROl and residual income for each division for each independent situation that follows Enter your ROI answers as a percentage rounded to two decimal places. (i.e., 0.1234 should be entered as 12.34%.)) a. Operating income increases by 9 percent. River Division Stream Division ROl Residual Income (Loss) b. Operating income decreases by 8 percent. River Division Stream Division ROl Residual Income (Loss) c. The company invests $256,000 in each division, an amount that generates $110,000 additional income per division River Division Stream Division ROl Residual Income (Loss) d. Coolbrook changes its hurdle rate to 5.01 percent River Division Stream Division ROl Residual Income (Loss)

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