Question 4:

Analyze the following balance sheet data to compute the necessary financial ratios.

• Total Assets: $500,000
• Total Liabilities: $200,000
• Total Equity: $300,000
• Total Revenue: $400,000
• Net Income: $60,000

Requirements:

1. Calculate the Return on Assets (ROA).
2. Calculate the Return on Equity (ROE).
3. Calculate the Asset Turnover Ratio.
4. Comment on the company's financial performance based on these ratios.