Find the firm net operating income and net income

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In 2016, the Allen Corporation had sales of $65 million, total assets of $49 million, and total liabilities of $18 million. The interest rate on the company's debt is 5.7 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent.

Problem 1: Compute the firm's 2016 net operating income and net income. (Round to two decimal places.)

Problem 2: 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.) (Round to two decimal? places.)

Reference no: EM132940766

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