The Karson Transport Company currently has income of $500,000 and pays interest expense of $200,000. The company to borrow $1 million on which the firm will pay 10 percent interest. The borrowed money will be used to finance an investment that is expected to increase the firm net operating income $400,000 a year. (Profitability analysis) The Allen had sales in 2013 of $65 million, total assets of $42 million, and total of $20 million. The interest rate on the company's debt is 6 percent, and its tax 35 percent. The operating profit margin is 12 percent. Compute the firm's 2013 net operating income and net income. Calculate the firm's operating return on assets and return on equity. (Efficiency analysis) Baryla Inc. manufactures high-quality decorator lamps plant located in eastern Tennessee. Last year the firm had sales of $100 million gross profit margin of 40 percent