In 2016, the Allen Corporation had sales of $66 million, total assets of $48 million, and total liabilities of $22 million. The interest rate on the companys debt is 5.8 percent. The operating profit margin is 12 percent.

a) Compute the firms 2016 net operating income and net income. (Round to two decimal places)

b) Calculate the firms operating return on assets and the return on equity. (Hint: You can assume that interest must be paid on all of the firms liabilities)