Below are the income statements for the Spanish Hoyos group. The company asks you to analyse these statements and answer the following questions:

(a) What is your opinion of the company?

(b) Is the company moving closer towards or further away from breakeven point?

(c) In your view, is the company in a period of heavy capital expenditures?

(d) What choices are made with regard to cost control?

(e) Explain the rise in financial expense.

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Grupo Hoyos Sales Change in finished goods and in-progress inventory 1 2 3 82,000 92,000 97,000 500 1,400 2,800 Production 82,500 93,400 99,800 Purchases of raw materials and goods for 24,800 27,400 29,900 resale Change in inventories - 1,700 - 500 - 1,600 Other external charges 20,200 23,000 23,500 Taxes 1,200 Personnel cost 29,000 1,400 33,000 1,500 37,000 Depreciation and amortisation 5,200 4,900 4,800 Provisions 100 Operating charges 78,800 200 89,400 - 95,100 Operating income 3,700 4,000 4,700 Interest, dividends and other financial income 300 400 300 Interest and other finance charges 2,300 2,900 3,900 Financial income - 2,000 - 2,500 - 3,600 Exceptional income Tax Net income - 100 -100 +100 800 700 600 800 700 600