Coolbrook Company has the following information available for the past year: Sales revenue Cost of goods sold and opera...
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 River Division $1,218,000 89B,000 $ 320,000 $1,130,000 Stream Division $1,812,000 1,291,000 $ 521,000 $1,590,000 The company's hurdle rate is 6.26 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...
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 River Division $ 1,203,000 897,000 $ 306,200 $ 1,070,000 Stream Division $1,806,000 1,290,000 $ 516,000 $1,590,000 The company's hurdle rate is 6.26 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:...
Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,218,000 $ 1,803,000 Cost of goods sold and operating expenses 887,000 1,297,000 Net operating income $ 331,000 $ 506,000 Average invested assets $ 1,030,000 $ 1,510,000 The company’s hurdle rate is 7.76 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. River Division Stream Division ROI % % Residual Income (Loss) 2. Recalculate...
Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,210,000 $ 1,814,000 Cost of goods sold and operating expenses 886,000 1,283,000 Net operating income $ 324,000 $ 531,000 Average invested assets $ 1,190,000 $ 1,560,000 The company’s hurdle rate is 6.26 percent. b. Operating income decreases by 8 percent. River Division Stream Division ROI Residual Income (Loss) c. The company invests $248,000 in each division, an amount that generates $108,000 additional...
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...
Coolbrook Company has the following information available for the past year: River Division $1,219,000 890,000 Stream Division Sales revenue Cost of goods sold and operating expenses $ 1,816,000 1, 300, еее $ Net operating income $ 329,000 516,000 Average invested assets $ 1,170,000 $ 1,530,000 The company's hurdle rate is 7.76 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...
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: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets River Division $ 1,200,000 896,000 $ 304,000 $ 1,130,000 Stream Division $ 1,818,000 1,282,000 $ 536,000 $1,580,000 The company's hurdle rate is 7.76 percent. Required: 1. Calculate return on investment (ROI)...
6. value: 10.00 points Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,208,000 $ 1,806,000 Cost of goods sold and operating expenses 883,000 1,287,000 Net operating income $ 325,000 $ 519,000 Average invested assets $ 1,160,000 $ 1,530,000 The company’s hurdle rate is 6.01 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last...
Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,206,000 $ 1,808,000 Cost of goods sold and operating expenses 898,000 1,297,000 Net operating income $ 308,000 $ 511,000 Average invested assets $ 1,150,000 $ 1,460,000 The company’s hurdle rate is 6.01 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...
show all work for quedtions A and B Myrtle Company has sales of $186,000, cost of goods sold of $77,340, operating expenses of $19,340, average invested assets of $580,000, and a hurdle rate of 7.50 percent. Calculate Myrtle's return on investment and its residual income. (Enter your ROI answer 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 dollar.) Return on Investment (ROI) Residual...