Managerial Accounting: P12-6 Consider the following information for HandyCraft Stores

Managerial Accounting 
Problem 12-6. Return on Investment, Profit Margin, and Investment Turnover 
Consider the following information for HandyCraft Stores for 2011 and 2012. 
2011 2012
Total assets 45,000,000 51,300,000 
Noninterest-bearing current liabilities 4,000,000 4,500,000 
Net income 3,500,000 4,500,000 
Interest expense 2,200,000 2,700,000 
Sales 60,000,000 87,500,000 
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 finance performance between 2011 and 2012.
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