Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Sales Cash Accounts receivable, net Inventory Total current assets Year 1 $4,637,620 $ 93,044 408,913 815,345 $1,317,302 $ 309,173 Year 2 $4,827,980 $ 100,498 430,451 874,845 $1,405,794 $ 335,686 Year 3 $5,037,790 $ 103,053 436,221 826,308 $1,365,582 $ 332,167 Year 4 $5,476,650 $ 73,509 513,795 893,122 $1,480,426 $ 328,371 Year 5 $5,660,690 $ 76,814 577,366 902,705 $1,556,885 $ 396,537 Current liabilities Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Year 1 Year 2 Year 3 Year 4 Year 5 Sales Current assets: Cash Accounts receivable Inventory Total current assets Current liabilities Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets Long-term debt (11% interest rate) Total stockholders' equity Interest paid on long-term debt Net income $5,000,000 $ 600,000 $2,400,000 $ 66,000 $ 430,000 Total assets at the beginning of the year were $4,800,000; total stockholders' equity was $2,200,000. The company's tax rate is 30%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 2. Compute the return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 3. Is financial leverage positive or negative? 1. Return on total assets 2. Return on equity 3. Financial Leverage