(Financial statement? analysis)??The annual sales for? Salco,Inc. were $ 4.47 million last year. The? firm's end-of-year balancesheet was as? follows:?? LOADING.... ? Salco's income statement forthe year was as? follows:?? LOADING.... a. Calculate? Salco's totalasset? turnover, operating profit? margin, and operating return onassets. b.??Salco plans to renovate one of its plants and therenovation will require an added investment in plant and equipmentof $ 1.04 million. The firm will maintain its present debt ratio of50 percent when financing the new investment and expects sales toremain constant. The operating profit margin will rise to 13.5percent. What will be the new operating return on assets ratio?(i.e., net operating income divided by total ?assets) for Salcoafter the? plant's renovation? c.??Given that the plant renovationin part ?(b?) occurs and? Salco's interest expense rises by $ 48comma 000 per? year, what will be the return earned on the common?stockholders' investment? Compare this rate of return with thatearned before the renovation. Based on this? comparison, did therenovation have a favorable effect on the profitability of the?firm? a.??Calculate? Salco's total asset? turnover, operatingprofit? margin, and operating return on assets. The? company'stotal asset turnover is nothing times.???(Round to two decimal?places.)

Sales

$4,470,000

?Less: Cost of goods sold

(3,492,000)

Gross profit

$978,000

?Less: Operating expenses

(493,000)

Net operating income

$485,000

?Less: Interest expense

(99,000)

Earnings before taxes

$ $386,000

?Less: Taxes

(135,100)

Net income

$ $250,900.

Current assets $506,000

Liabilities

$1,001,000

Net fixed assets

1496,000

?Owners' equity

1 ,001,000

Total Assets

$2,002,000

Total

$2,002,000