assignment

Problem 12.3 ( LO2 ) Return on Investment Consider the following information for McKinley and Son:

	12/31/2020	12/31/2021
Total assets	$55,000,000	$62,000,000
Noninterest-bearing current liabilities	1,100,000	1,320,000
Net income	3,300,000	3,400,000
Interest expense	726,000	770,000
Tax rate	20%	20%

Required

1. Calculate ROI for 2020 and 2021. Round ROI to four decimal places.

2. While income has increased in fiscal 2021, is it clear that the company’s performance has improved?

Please reference this chapter and problem in your textbook. Refer to problem instructions in the textbook. Please upload your completed assignment to this page by the due date.

Please note that all textbook assignments must be submitted in Excel.