Question
PROBLEM 12-3. Return on Investment [LO 4] Mckinley and Son, Inc.: 12/31/2014 12/31/2015 Total assets 55,000,000 62,000,000 Non interest-bearing current liabilities 1,100,000 1,320,000 Net income
PROBLEM 12-3. Return on Investment [LO 4] Mckinley and Son, Inc.:
12/31/2014 12/31/2015
Total assets 55,000,000 62,000,000
Non interest-bearing current liabilities 1,100,000 1,320,000
Net income 3,300,00 3,426,000
Interest expense 726,000 770,000
Tax rate 35% 35%
Required
a. Evaluate the company in terms of ROI.
b. While income has increased in fiscal 2015, is it clear that the companys performance has improved?
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Accounting Principles A Business Perspective Financial Accounting Chapters 9 To 18
Authors: Bill Buxton, Amy Sibiga
1st Edition
1461160863, 978-1461160861
