Question: Heyy, I really need help understanding this question, I have attempted it and my answers are always different to the ones in the answer key.

Heyy, I really need help understanding this question, I have attempted it and my answers are always different to the ones in the answer key. Please help

2015 2016

Sales 51,000 55,625

Purchases of raw materials

13,500 12,750

Expenses in personnel

10,000 13,200

Financial Expenses

7,000 14,000

Positive result 20,500 15,675

This company has had the same total net assets during the years of 2015 and 2016 (200,000 Euros), financed with equity capital. These equities have had a cost of 10% in both years; therefore, we'd like to know:

a) Economic profitability. Interpret the results.

b) The sales margin and asset turnover. Interpret the results.

c) Financial Profitability. Interpret the results.

d) Type of leverage in both periods.

e) Please explain the differences between the Economic profitability and Financial Profitability in both periods.

f) Do you think it would be good for the company to increase its debt levels for the upcoming year 2017? Support your explanation based on the concept of leverage.

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