Selected financlal data from the June 30 year-end statements of Safford Company are given below Total assets $5,600,000 S 630,000 $2,800,000 56,700 $ 410,000 Long-term debt (9% interest rate) Total stockholders' equity Interest paid on long-term debt Net income Total assets at the beginning of the year were $5,400,000; total stockholders' equity was $2,600,000. The company's tax rate is 30 %. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (L.q., 0.1234 should be entered as 12.3).-) 2. Compute the return on equity. (Round your percentage answer to 1 decimeal place (Ie., 0.1234 should be entered as 12.3).) 3. Is financial leverage positive or negative? 1. Return on total assets % 2. Return on equity 9% 3. Financial Leverage