Selected financial data from the June 30 year-end statements of Safford Company are given below. $5,800,000 $ 720,000 $2,700,000 79,200 $ 390,000 Total assets Long-term debt (11% interest rate) Total stockholders' equity Interest paid on long-term debt Net income Total assets at the beginning of the year were $5,600,000; total stockholders' equity was $2,500,000. The company's tax rate is 30%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (l.e., 0.1234 should be entered as 12.3).) 2 Compute the return on equity. (Round your percentege 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