Exercise 16-11 (Algo) Financial Ratios for Assessing Profitability and Managing Debt (LO16-4, LO16-5] 4 Selected financial data from the June 30 year-end statements of Safford Company are given below: 0.8 points Total assets Long-term debt (11% interest rate) Total stockholders' equity Interest paid on long-term debt Net income $5,900,000 $ 550,000 $3,100,000 60,500 $ 460,000 Skipped Total assets at the beginning of the year were $5,700,000; total stockholders' equity was $2,900,000. The company's tax rate is 35%. eBook Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (I.e., 0.1234 should be entered as 12.3).) 2. Compute the return on equity. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) 3. Is financial leverage positive or negative? References 1. Return on total assets 2. Return on equity 3. Financial Leverage COTB MC Qu. 16-64 (Algo) Assume a company whose sales... Assume a company whose sales are all on account provided the following information: Gross margin percentage Cost of goods sold Accounts receivable balance, beginning of the year Accounts receivable balance, end of the year Net income 40% $200,000 $ 20,000 $ 30,000 $ 10,000 The accounts receivable turnover is closest to: Multiple Choice 13. 17. 7. 10