Problem 12-3

Consider the following information for McKinley and Son, Inc.:

12/31/2014	12/31/2015
Total assets	$55,300,000	$60,200,000
Noninterest-bearing current liabilities	1,040,000	1,300,000
Net income	3,370,000	3,496,500
Interest expense	703,000	740,000
Tax rate	35%	35%

Evaluate the company in terms of ROI. (Round ROI to 2 decimal places, e.g. 15.32%.)

2014	2015
ROI	%	%

While income has increased in fiscal 2015, is it clear that the companys performance has improved? It is (not clear/clear) that the companys performance has improved.