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PA$10-1($Algo$)$ Calculating Return on Investment, Residual Income, Determining Effect of Changes in

Sales, Expenses, Invested Assets, Hurdle Rate on Each $[$LO $10-4,10-5]$

Coolbrook Company has the following information available for the past year:

The company's hurdle rate is $6\mathrm{.}76$ percent.

Required:

Calculate return on investment $(ROI)$ and residual income for each division for last year.

Recalculate ROI and residual income for each division for each independent situation that follows:

a$.$ Operating income increases by $12$ percent.

b$.$ Operating income decreases by $10$ percent.

c$.$ The company invests $$254,000$ in each division, an amount that generates $$115,000$ additional income per division.

d$.$ Coolbrook changes its hurdle rate to $4\mathrm{.}76$ percent.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2A$

Req $2$B

Req $2C$

Req $2$D

Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases

by $12$ percent.

Note: Enter your ROI answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%,$

Loss amounts should be indicated with a minus sign.PA$10-1($Algo$)$ Calculating Return on Investment, Residual Income, Determining Effect of Changes in

Sales, Expenses, Invested Assets, Hurdle Rate on Each $[$LO $10-4,10-5]$

Coolbrook Company has the following information available for the past year:

The company's hurdle rate is $6\mathrm{.}76$ percent.

Required:

Calculate return on investment $(ROI)$ and residual income for each division for last year.

Recalculate ROI and residual income for each division for each independent situation that follows:

a$.$ Operating income increases by $12$ percent.

b$.$ Operating income decreases by $10$ percent.

c$.$ The company invests $$254,000$ in each division, an amount that generates $$115,000$ additional income per division.

d$.$ Coolbrook changes its hurdle rate to $4\mathrm{.}76$ percent.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2A$

Req $2$B

Req $2C$

Req $2$D

Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases

by $12$ percent.

Note: Enter your ROI answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%,$

Loss amounts should be indicated with a minus sign.

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