In 2016, the Allen Corporation had sales of $61 million, total assets of $50 million, and total liabilities of $21 million. The interest rate on the companies debt is 6.2%, and its tax rate is 35%. The operating profit margin is 10%.
a. Compute the firm's 2016 net operating income and net income.
The firm's 2016 net operating income is $_____million.
The firm's 2016 net income is $______million.
b. Calculate the firm's operating return on assets in return on equity.
The operating return on assets is______%
The return on equity is_______%