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PROBLEM 12-6. Return on Investment, Profit Margin, and Investment Turnover [LO 2] Consider the following...

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Accounting

PROBLEM 12-6. Return on Investment, Profit Margin, and Investment Turnover [LO 2] Consider the following information for HandyCraft Stores for 2017 and 2018:

2017 2018 Total assets $59,500,000 $56,430,000 Noninterest-bearing current liabilities 4,400,000 4,950,000 Net income 3,650,000 4,950,000 Interest expense 2,420,000 2,975,000 Sales 66,000,000 96,250,000 Tax rate 40% 40% Required a. Compute ROI for both years. b. Break ROI down into profit margin and investment turnover. c. Comment on the change in financial performance between 2017 and 2018.

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