(Answered) Problem - return on investmentnbspconsider the following

Accounting

PROBLEM - Return on Investment

Consider the following information for McKinley and Son, Inc.

	12/31/2011	12/31/2012
Total assets	$50,000,000	$56,200,000
Noninterest-bearing current liabilities	1,000,000	1,200,000
Net income	3,000,000	3,115,000
Interest expense	660,000	700,000
Tax rate	35%	35%
Required

Required -

a. Evaluate the company in terms of ROL

b. While income has increased in fiscal 2012, is it clear that the company's performance has improved?

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