In? 2016, the Allen Corporation had sales of $65 million, total assets of $42 million, and total liabilities of $17 million. The interest rate on the? company's debt is 5.6 percent, and its tax rate is 35 percent. The operating profit margin is 11 percent.
a. Compute the? firm's 2016 net operating income.
Compute the? firm's 2016 net income.
b. Calculate the? firm's operating return on assets? (Hint: You can assume that interest must be paid on all of the? firm's liabilities.)
Calculate the? firm's return on equity ? (Hint: You can assume that interest must be paid on all of the? firm's liabilities.)