Help With C please!!

(Financial statementanalysis)The annual sales forSalco, Inc. were $ 4.61

$4.61 million last year. Thefirm's end-of-year balance sheet was asfollows:LOADING...

. Salco's income statement for the year was asfollows:LOADING...

.

a. CalculateSalco's total assetturnover, operating profitmargin, and operating return on assets.

b.Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of $ 1.05

$1.05 million. The firm will maintain its present debt ratio of 50

50 percent when financing the new investment and expects sales to remain constant. The operating profit margin will rise to 13.3

13.3 percent. What will be the new operating return on assets ratio(i.e., net operating incomedivided by

total assets) for Salco after theplant's renovation?

c.Given that the plant renovation in part (b) occurs andSalco's interest expense rises by $ 55 comma 000

$55,000 peryear, what will be the return earned on the commonstockholders' investment? Compare this rate of return with that earned before the renovation. Based on thiscomparison, did the renovation have a favorable effect on the profitability of thefirm?

a.CalculateSalco's total assetturnover, operating profitmargin, and operating return on assets.

Thecompany's total asset turnover is

2.32

2.32 times.(Round to two decimalplaces.)

Thecompany's operating profit margin is

13.3

13.3%. (Round to one decimalplace.)

Thecompany's operating return on assets is

30.9

30.9%. (Round to one decimalplace.)

b.Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of $ 1.05

$1.05 million. The firm will maintain its present debt ratio of 50

50 percent when financing the new investment and expects sales to remain constant. The operating profit margin will rise to 13.3

13.3 percent. What will be the new operating return on assets ratio(i.e., net operating incomedivided by

total assets) for Salco after theplant's renovation?

Thecompany's new operating return on assets is

20.2

20.2%. (Round to one decimalplace.)

c . Given that the plant renovation in part (b) occurs andSalco's interest expense rises by $ 55 000

$55,000 peryear, what will be the return earned on the commonstockholders' investment?

The new return onowners' equity is

(Round to one decimalplace.)

Current assets

$501,000

Liabilities

$993,500

Net fixed assets

1,486,000

Owners' equity

993,500

Total Assets

$1,987,000

Total

$1,987,000

Sales

$4,610,000

Less: Cost of goods sold

(3,503,000)

Gross profit

$1,107,000

Less: Operating expenses

(493,000)

Net operating income

$614,000

Less: Interest expense

(110,000)

Earnings before taxes

$504,000

Less: Taxes (35 %

35%)

(176,400)

Net income

$ 327 comma 600