(Related to Checkpoint​ 4.3) ​(Analyzing Profitability) In​2016, the Allen Corporation had sales of
$63
​million, total assets of
$41
​million, and total liabilities of
$25
million. The interest rate on the​ company's debt is
6.4
​percent, and its tax rate is
35
percent. The operating profit margin is
10
percent.
a. Compute the​ firm's 2016 net operating income and net income.
b. Calculate the​ firm's operating return on assets and return on equity.​ (Hint: You can assume that interest must be paid on all of the​ firm's liabilities.)
Question content area bottom
Part 1
a. Compute the​ firm's 2016 net operating income and net income.
The​ firm's 2016 net operating income is
​$enter your response here
million. ​ (Round to two decimal​ places.)