Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets Long-term debt (9% interest rate) Total stockholders' equity Interest paid on long-term debt Net income $5,800,000 $ 610,000 $2,600,000 $ 54,900 $ 400,000 Total assets at the beginning of the year were $5,600,000; total stockholders' equity was $2,400,000. The company's tax rate is 40%. 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 %