In$2016,$ the Allen Corporation had sales of $ $61$million$,$ total assets of $ $44$million$,$ and total liabilities of $ $16$ million. The interest rate on the$$ company's debt is $6\mathrm{.}5$percent$,$ and its tax rate is $35$ percent. The operating profit margin is $10$ percent.

a$.$ Compute the$$ firm's $2016$ 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.$)$ a$.$ Compute the$$ firm's $2016$ net operating income and net income.

The$$ firm's $2016$ net operating income is $$$The$$ firm's $2016$ net operating income is $$$

$$

$6\mathrm{.}10$ million. $($Round to two decimal$$ places.$)$

Part $2$

The$$ firm's $2016$ net income is $$$

$$

$$3\mathrm{.}29$ million.$($Round to two decimal$$ places.$)$

Part $3$

b$.$ Calculate the$$ firm's operating return on assets and return on equity.

The operating return on assets is

$$

$13\mathrm{.}86\%.($Round to two decimal$$ places.$)$

Part $4$

The return on equity is

$$

$11\mathrm{.}75\%.($Round to two decimal$$ places.$)$

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