PROBLEM 3 Return on Investment, Profit Margin, and Investment Turnover (20 possible points)
Consider the following information for HandyCraft Stores for 2017 and 2018.
					2017	2018
	Total Assets				$42,000,000	$47,500,000
	Noninterest-bearing current liabilities				3,600,000	4,100,000
	Net income				3,000,000	4,000,000
	Interest expense				2,000,000	2,500,000
	Sales				57,000,000	81,000,000
	Tax rate				40%	40%
Required:
a. Compute ROI for both years.
b. Break ROI down into profit margin and investment turnover.
c. Comment on the change in financial performance between 2017 and 2018.