Consider the following information for McKinley and Son, Inc.
12/31/2014 12/31/2015
__________________________________________________________________________________________________________
Total assets $55,000,000 $62,000,000
Noninterest-bearing current liabilities 1,100,000 1,320,000
Net income 3,300,000 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 company's performance has improved?