Question 8

Ratio Analysis: RST Corp. has the following financial data:

• Net Income: $200,000
• Total Assets: $1,000,000
• Total Liabilities: $400,000
• Total Equity: $600,000
• Sales: $1,500,000

Requirements:

1. Calculate the Return on Assets (ROA).
2. Compute the Return on Equity (ROE).
3. Determine the Debt to Equity Ratio.
4. Analyze the Net Profit Margin.