Question

The Allen Corporation had sales in 2013 of $65 million, total assets of $42 million, and total liabilities of $20 million. The interest rate on the company’s debt is 6 percent, and its tax rate is 35 percent. The operating profit margin is 12 percent.
a. Compute the firm’s 2013 net operating income and net income.
b. Calculate the firm’s operating return on assets and return on equity.



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  • CreatedOctober 31, 2014
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