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PROBLEM 12-3. Return on Investment [LO 2] 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 3,426,000
Interest Expense 726,000 770,000
Tax rate 20% 20%
A. Calculate ROI for 2020 and 2021 . Round ROI to four decimal places.
B. While income has increased in fiscal 2021, is it clear that the company's performance has improved?
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