her browser. Import your favorites Related to checkpoint 4.3 on page 91) CProfitability analysis The Allen Corporation ha ales in 2010 of $65 million, total assets of $42 million, and total liabilities of $20 million. The terest rate on the companys debt is 6 percent, and its tax rate is 35%. The operating profit margin is 12% a. Compute the firm's 2010 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.) (Efficiency analysis) Baryla Inc. manufactures high quality decorator lamps in a plant located in Eastern Tennessee. Last year the firm had sales of $100 million and a gross profit margin of 40%. a. How much inventory can Baryla hold and still maintain an inventory turnover ratio of at least 6.0 times? b. Currently, some of Baryla's inventory includes $2 million of outdated and damaged goods that simply remain in inventory and are not salable. What haventory turnover ratio must the good inventory have to maintain in order to achieve an overall turnover ratio of at least 6.0 (including the unsalable items)? 0. (Efficiency analysis) ALei Industries has credit sales of s150 million a year. ALei management reviewed its credit policy and decided that it wants to maintain an av