Provence Winery has provided the following financial statements for the year ended December 31, 2023:

• Balance Sheet:
  • Total Assets: €1,500,000
  • Total Liabilities: €600,000
  • Total Equity: €900,000
• Income Statement:
  • Sales Revenue: €800,000
  • Cost of Goods Sold: €300,000
  • Operating Expenses: €200,000
  • Net Income: €300,000

a) Calculate the following financial ratios: debt-to-equity ratio, return on assets (ROA), and return on equity (ROE).

b) Interpret the results of the financial ratios calculated in part (a) and provide insights into Provence Winery's financial performance and leverage.

c) Based on your analysis, identify potential areas for improvement and strategic recommendations for the winery.