Please provide formulas and step by step solutions. Problem 12.3 (L02) Return on...
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Problem 12.3 (L02) 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 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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