Return on investment-profit margin and investment turnover

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Return on Investment, Profit Margin, and Investment Turnover Consider the following information for HandyCraft Stores for 2014 and 2015.

2014 Total Assets 42,000,000 Noninterest-bearing current liabilities 3,600,000 Net income 3,000,000 Interest expense 2,000,000 Sales 57,000,000 Tax Rate 40%

2015 Total Assets 47,500,000 Noninterest-bearing current liabilities 4,100,000  Net income 4,000,000 Interest expense 2,500,000 Sales 81,000,000 Tax Rate 40%

Compute ROI for both years.

Break ROI down into profit margin and investment turnover.

Comment on the change in financial performance between 2014 and 2015.

Reference no: EM131258862

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