PA10-1 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Asset, Hurdle Rate on Each [LO 10-4, 10-5] Coolbrook Company has the following information available for the past year Stream Division $ 1,808, 1,287,000 River Division S 1,211,000 B87,000 Sales revenue Cost of goods sold and operating expenses 324,000 521,000 Net operating income $ 1,560,000 $ 1,150,000 Average invested assets The company's hurdle rate is 6.76 percent. Required: 1. Calculate retum on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34 %.)) River Stream Division Division ROI Residual Income (Loss) 2. Recalculate ROI 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 10 percent. River Division Stream Division ROI Residual Income (Loss) b. Operating income decreases by 8 percent. River Division Stream Division ROI Residual Income (Loss) c. The company invests $249,000 in each division, an amount that generates $120,000 additional income per division River Stream Division Division ROI Residual Income (Loss) d. Coolbrook changes its hurdle rate to 4.76 percent River Division Stream Division ROI Residual Income (Loss)