Save Homework: 4-2 MyFinanceLab Assignment (5 P4-31 (similar to) Score: 0 of 5 pts 11 of 12 (5 completel HW Score: 26%, 13 of 50 pts Question Help 0 Financial statement analysis) The annual sales for Salco, Inc. were $472 million last year. The firm's end-of-year balance sheet was as follows Salco's Income statement for the year was as follows: a. Calculate Silco's ipal asset turnover, operating profit margin, and aperating return an assets b. Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of S105 million. The firm wil maintain its present debt ratio af so percent when financing the new investirert and expects sales to remain constant The operating profit margin will rise to 13.9 percent, What will be the new operating return on assets ratio i.e. net operating income + total assets) for Salco after the plant's renovation? C. Given that the plant renovation in part (b) accurs and Salco's interest expense rises by $54,000 per year, what will be the return eamed on the common stockholders investiment? Compare this rate of return with that eamed before the renovations. Based on this comparison, did the rernovation have a favorable effect on the prolilability of the fem? a. Calculate Salco's total asset tumover, operating profit margin, and operating retum on assets The company's total asset turnover is times. {Round to two decimal places.) . i Data Table Current assets Net fixed assets Total Assets $500,000 Liabilities 1,478,000 Owners' equity $1,978,000 Total $589,000 989,000 $1,978,000 Print Done Enter your answer in the answer box and then click Check Answer 2 6 parts i tertiairing Clear All Check Answe Save Homework: 4-2 MyFinanceLab Assignment