River Stream Division Division Sales revenue $1,215,000 897,000 $1,818,000 1,287,000 $ 531,000 $1,500,000 Cost of goods sold and operating expenses Net operating income $ 318,000 Average invested assets $1,160,000 The company's hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROl and residual income for the division for each independent situation that follows: a. Operating income increases by 9 percent. b. Operating income decreases by 9 percent. c. The company invests $259,000 in each division, an amount that generates $105,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: The company invests $259,000 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, (i.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 lessA River Division Stream Division ROI Residual Income (Loss) River Stream Division Division Sales revenue $1,215,000 897,000 $1,818,000 1,287,000 Cost of goods sold and operating expenses Net operating income $ 318,000 531,000 Average invested assets $1,160,000 $1,500,000 The company's hurdle rate is 7.26 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 9 percent. c. The company invests $259,000 in each division, an amount that generates $105,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 20 Req 2D Recalculate ROI and residual income for each division for the independent situation that follows: Coolbrook changes its hurdle rate to 5.26 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss amounts should be indicated with a minus sign.) River Division Stream Division ROI % Residual Income (Loss)