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  3. selected financial data from the june 30 year-end

Selected financial data from the June 30 year-end statements of Saford Company are given below...

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Accounting

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Selected financial data from the June 30 year-end statements of Saford Company are given below Total assets Long-term debt (10% interest rate) $580,000 Total stockholders' equity Interest paid on long-term debt$58,000 Net income $5,100,000 $2,300,000 $460,000 Total assets at the beginning of the year were $4,900,000; total stockholders' equity was $2,100,000 e company's tax rate is 35%. Required: Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) eturn on total assets 2, Compute the return on equity (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Retun on equity 3 Is financial leverage positive or negative? O Positive O Negative

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