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In 2016, the Allen Corporation had sales of $67 million, total assets of $43 million,...

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Finance

In 2016, the Allen Corporation had sales of $67 million, total assets of $43 million, and total liabilities of $ 21 million. The interest rate on the company's debt is 5.6 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent.

a. The firm's 2016 net operating income is $______million (Round to two decimal places.)

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.)

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