Bike-With-Us Corporation, a specialty bicycle parts replacement venture, was started last year by two former professional cyclists who had substantial competitive racing experience, including the Tour de France. The two entrepreneurs borrowed $50,000 from members of their families, and each put up $30,000 in equity capital. Retail space was rented, and $60,000 was spent for fixtures and store equipment. Following is the abbreviated income statement and balance sheet information for the Bike-With-Us Corporation after one year of operation. BIKE-WITH-US CORPORATION Sales $325,000 Operating costs 285,000 Depreciation 10,000 Interest 5,000 Taxes 6,000 Cash $1,000 Receivables 30,000 Inventories 50,000 Fixed assets, net 50,000 Payables 11,000 Accruals 10,000 Long-term loan 50,000 Stockholders' equity 60,000 Use the financial statement data for the Bike-With-Us Corporation provided in Question 1 to make the following calculations: (a) Calculate the operating return on assets. (b) Determine the effective interest rate paid on the long-term debt. (c) Calculate the NOPAT margin. How does this compare with the results for the net profit margin? Did the owners benefit from the use of interest-bearing long-term debt?