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 3,400,000

Interest Expense 726,000 770,000

Tax rate 20% 20%

Requierd

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?