Selected financial data from the June 30 year-end statements of Safford Company are given below: $6,000,000 Total assets Long-term debt (10% $720,000 interest rate) Total stockholders' equity $2,800,000 Interest paid on long-term $72.000 debt $370,000 Net income Total assets at the beginning of the year were $5,800,000; total stockholders' equity was $2,600,000. The company's tax rate is 35%. 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).) Return on total assets 2. Compute the return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on equity 3. Is financial leverage positive or negative? Positive |.reFL2 Negative