Question Details
Coolbrook Company has the following information available for
the past year:
|
River
Division |
Stream Division | |||
Sales revenue | $ | 1,202,000
| $ | 1,800,000
|
Cost of goods sold
and operating expenses | 895,000
| 1,291,000
| ||
Net operating
income | $ | 307,000
| $ | 509,000
|
Average invested
assets | $ | 1,130,000
| $ |
1,490,000 |
The companyAc??cs hurdle rate is
8.01 percent. |
Required: | ||||||||||||||||||
1. |
Calculate return on investment (ROI) and residual income for
each division for last year. (Do not round your
intermediate calculations. Round "ROI" answers to 2 decimal
places.)
|
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This question was answered on: Dec 08, 2020
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DATE ANSWEREDDec 08, 2020
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