(Evaluating profitability) The Malia Corporation had sales in 2015 of $70 million, total assets of $46 million, and total liabilities of $ 23 million. The interest rate on the company's debt is 6.1 percent and its tax rate is 30 percent. The operating profit margin was 12.9 percent. What were thecompany's operating income and netincome? What was the operating return on assets and return onequity? Assume that interest must be paid on all of the debt.

The operating income was $ . (Round to the nearestdollar.)

The net income was $(Round to the nearestdollar.)

The operating return on assets was% (Round to one decimalplace.)

The return on equity was%. (Round to one decimalplace.)

(Computing ratios) Use the information from the balance sheet and income statement in the popupwindow, to calculate the followingratios:

a. Current ratio

b.Acid-test ratio

c. Times interest earned

d. Inventory turnover

e. Total asset turnover

f. Operating profit margin

g. Days in receivables

h. Operating return on assets

i. Debt ratio

j. Fixed asset turnover

k. Return on equity

Balance Sheet

ASSETS

Cash$90,000

Accounts receivable 37,000

Inventory 41,000

Prepaid expenses 15,000

Total current assets $183,000

Gross plant and equipment 405,000

Accumulated depreciation(69,000)

Total assets$519,000

LIABILITIES AND OWNERS' EQUITY

Accounts payable$94,000

Accrued liabilities 68,000

Total current liabilities$162,000

Long-term debt

124,000

Common stock

205,000

Retained earnings

28,000

Total liabilities and equity

$

519,000

Income Statement

Sales*

$

217,000

Cost of goods sold

(89,000)

Gross profit

$

128,000

Selling, general, and administrative expenses

(25,000)

Depreciation expenses

(30,000)

Operating income

$

73,000

Interest expense

(6,000)

Earnings before taxes

$

67,000

Taxes

(26,800)

Earnings available to common shareholders

$

40,200

* 12% of sales are cash sales.

(Price book) Chang, Inc.'s balance sheet shows astockholders' equity-book value(total commonequity) of 754,900. Thefirm's earnings per share is $2.97, resulting in aprice/earnings ratio of 12.96X. There are 54,000 shares of common stock outstanding. What is theprice/book ratio? What does this indicate about how shareholders viewChang, Inc.?

Theprice/book ratio is? (Round to two decimalplaces.)

"The price/book ratio indicates that the shareholders believe that thecompany's shares are worth more than twice their historical cost value on the balancesheet."

Is the above statement true orfalse? (Select from thedrop-down menu.)