The Allen Corporation had sales in 2013 of $60 million, total assets of $42 million, and total liabilities of $15 million. The interest rate on the company's debt is 6.3% , and its tax rate is 35%. The operating profit margin is 10%.

a.Compute the firm's 2013 net operating income and net income.

b.Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)