In 2016, Allen Corporation had $62 million in sales, $47 million in total assets and $18 million in total debt. The company's debt has an interest rate of 5.6 percent and a tax rate of 35 percent. Its operating margin is 14 percent.

 A. Calculate the firm's 2016 net operating income and net income. 

B. Calculate the firm's return on operating assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's debts.)

Answer rating: 100% (QA)

A To calculate the firms 2016 net operating income and net income we need to consider the operating ... View the full answer