Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $ 5,800,000 Long-term debt (11% interest rate) $ 640,000 Total stockholders equity $ 2,800,000 Interest paid on long-term debt $ 70,400 Net income $ 440,000 Total assets at the beginning of the year were $5,600,000; total stockholders equity was $2,600,000. The companys 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?