Question
The Malia Corporation had sales in 2015 of $ 70 million, total assets of $ 48 million, and total liabilities of $ 15 million. The
The Malia Corporation had sales in 2015 of $70 million, total assets of $48 million, and total liabilities of $ 15 million. The interest rate on thecompany's debt is 6.1
percent and its tax rate is 30 percent. The operating profit margin was 11.4 percent. What were thecompany's operating income and netincome? What was the operating return on assets and return onequity? Assume that interest must be paid on all of the debt.
a)The operating income was ___________ (Round to the nearestdollar.)
b)The net income was _________________ (Round to the nearestdollar.)
c)The operating return on assets was 16.6______________ (Round to one decimalplace.)
d)The return on equity was_________________ (Round to one decimalplace)
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