Help with ratio analysis Image link :http://tinypic.com/r/20zw8k4/8 (Ratio analy

Question

Help with ratio analysis

Image link :http://tinypic.com/r/20zw8k4/8

(Ratio analysis) The Allen Corporation had sales in 2013 of $64 million, total assets of $43 million, and total liabilities of $15 million. The interest rate on the company's debt is 6.9 percent and its tax rate is 30 percent. The operating profit margin was 12.4 percent. What was the company's operating income and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt. The operating income was $ (Round to the nearest dollar.)

Explanation / Answer

Operating Income = .124 X $64,000,000 = 7,936,000

            Net Income:

                        Operating Income                                         7,936,000

                        Minus: Interest expense -   (.069 X 15,000,000)   =   1,035,000

                                    Taxes: -           [.3 X (7,936,000

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