Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods...
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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 The company's hurdle rate is 6.01 percent. River Division $1,216,000 894,000 322,000 $1,000,000 $1,570,000 $ Stream Division $1,800,000 1,299,000 $ 501,000 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: Reg 2A a. Operating income increases by 9 percent. b. Operating income decreases by 9 percent. c. The company invests $257,000 in each division, an amount that generates $102,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.01 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 20 Req 20 Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34%.)) Req 20 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 The company's hurdle rate is 6.01 percent. River Division $1,216,000 894,000 322,000 $1,000,000 $1,570,000 $ Stream Division $1,800,000 1,299,000 $ 501,000 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: Reg 2A a. Operating income increases by 9 percent. b. Operating income decreases by 9 percent. c. The company invests $257,000 in each division, an amount that generates $102,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.01 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 20 Req 20 Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34%.)) Req 20
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Step 1 1 Return on Investment Net Operating Income A Average invested assets B Return on Investment ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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