In 2016, the Allen Corporation had sales of$60million, total assets of $49 million, and total liabilities of $15 million. The interest rate on the company's debt is 5.7 percent, and its tax rate is 35 percent. The operating profit margin is 11 percent.

Round to two decimal places:

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

Operating: $6.6 mil

Net:

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.)

ROA:

ROE: