Selected financial data from the June 30 year-end statements of Safford Company are given below. Total assets Long-term debt (12% interest rate) Total stockholders equity Interest paid on long-term debt Net income $5,600,000 710,000 $2,100,000 85,200 S 430,000 Total assets at the beginning of the year were $5,400,000: total stockholders' equity was $1.900,000. The company's tax rate is 35%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (ie., 0.1234 should be entered as 12.3):) 2. Compute the return on equity. (Round your percentage answer to 1 decimal place (ie., 0.1234 should be entered as 12.3).) 3. Is financial leverage positive or negative? 1. Return on total assets 2. Return on equity 3. Financial Leverage % Prev 5 or 6 Next >