In? 2016, the Allen Corporation had sales of $ 66 million, total assets of $47 million, and total liabilities of $19 million. The interest rate on the? company's debt is 6.4 percent, and its tax rate is 35 percent. The operating profit margin is 13 percent.
a. Compute the? firm's 2016 net operating income and net income.
b. Calculate the? firm's operating return on assets and return on equity.? (Hint: You can assume that interest must be paid on all of the? firm's liabilities.)