There was a bit of concern about one of Big Rock's newer entities - Big Rock Paving Company. Management wants you to review the two financial statements below and give your analysis of the company's performance. Big Rock Paving Company Assets Current Assets: Cash Accounts Receivable Inventory Total Current Assets Liabilities Current Liabilities: 500,000 Accounts Payable 300,000 Notes Payable 800,000 1,300,000 Total Current Liabilities 700,000 500,000 1,200,000 Fixed Assets: Property, Plant & Equipment Less: Accumulated Depreciation Net Fixed Assets Total Assets Owners' Equity: 2,200,000 Common Stock ($1 Par) 600,000 Capital Surplus 1,600,000 Retained Earnings 2,900,000 Total Owners' Equity Total Liabilities and Owners' Equity 600,000 100,000 100,000 800,000 2,900,000 Big Rock Paving Company Income Statement for Year Ending December 31, 2021 Sales Less: Cost of Goods Sold Less: Administrative Expenses Less Depreciation Earnings Before Interest and Taxes Less: Interest Expense Taxable Income Less: Taxes Net Income Dividends Addition to Retained Earnings 3,400,000 2,700,000 700,000 682,000 (682,000) 120,000 (802,000) (280,000) (522,000) 0 (522,000) Required: Evaluate the performance of Big Rock Paving Company using the below ratios. Define each ratio, perform the calculation, and provide an explanation of the result. Page 4 of 6 FIN42004 Portfolio Management - Case Study Analysis. Academic Year 2021/2022, Semester 2 a. Return on equity b. Total assets turnover c. Return on assets d. Current ratio e. Receivables turnover [20 marks]