Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] 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 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 each division for each independent situation that follows: a. Operating income increases by 8 percent. b. Operating income decreases by 8 percent. c. The company invests $241,000 in each division, an amount that generates $118,000 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 River Division $ 1,206,000 891,000 $315,000 $1,160,000 ROI Residual Income (Loss) Req 2A Req 28 Req 20 Calculate return on investment (ROI) and residual income for each division for last year. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.) Req 20 River Division Stream Division % Stream Division $ 1,808,000 1,296,000 $ 512,000 $ 1,540,000

Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] 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 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 each division for each independent situation that follows: a. Operating income increases by 8 percent. b. Operating income decreases by 8 percent. c. The company invests $241,000 in each division, an amount that generates $118,000 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 River Division $ 1,206,000 891,000 $315,000 $1,160,000 ROI Residual Income (Loss) Req 2A Req 28 Req 20 Calculate return on investment (ROI) and residual income for each division for last year. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.) Req 20 River Division Stream Division % Stream Division $ 1,808,000 1,296,000 $ 512,000 $ 1,540,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How to solve:S= 1/1.06[1-1/(1.06)^20]/1-1/1.06
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500,00X 500
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7-3 A
E10.15
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The answer is 1,130.55
How to do