In2016, the Allen Corporation had sales of $69 million, total assets of $49 million, and total liabilities of $16 million. The interest rate on thecompany's debt is 6.2 percent, and its tax rate is 35 percent. The operating profit margin is 12 percent.

a. Compute thefirm's 2016 net operating income and net income.

b. Calculate thefirm's operating return on assets and return on equity.

(Hint: You can assume that interest must be paid on all of thefirm's liabilities.)

Round to Two Decimal Places