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Selected financial data from the June 30 year-end statements of Safford Company are given below Total assets Long-term debt (10% interest rate) Total stockholders' equity

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Selected financial data from the June 30 year-end statements of Safford Company are given below Total assets Long-term debt (10% interest rate) Total stockholders' equity Interest paid on long-term debt Net income $5,400,000 $680,000 $2,600,000 $68,000 $410,000 Total assets at the beginning of the year were $5,200,000; total stockholders' equity was $2,400,000. 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. Ils financial leverage positive or negative? Positive Negative

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