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 $ 5,700,000 $ 690,000 $ 2,200,000 $ 69,000 $ 430,000 Total assets at the beginning of the year were $5,500,000; total stockholders' equity was $2,000,000. 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).) 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 % %