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1 . The Salza Technology Corporation successfully increased its top line sales from $ 3 7 5 , 0 0 0 in 2 0 1

1.The Salza Technology Corporation successfully increased its top line sales from $375,000 in 2015 to $450,000 in 2016. Net income also increased as did the ventures total assets. You have been asked to compare the financial performance between the two years.A. Calculate the net profit margin and the sales-to-total-assets ratio for Salza for 2016 using averagetotal assets. Also, calculate the return on total assets in 2016 using average total assets.B. Calculate the ratios in the ROA model for both 2015 and 2016 using year-end total assets. Commenton any financial ratio differences.C. Expand the 2016 ROA model discussed in Part A into an ROE model that includes financial leverageas measured by the equity multiplier. Use average owners or stockholders equity in yourcalculation.D. Expand the 2015 and 2016 ROA model calculations in Part B into ROE models based on year-endowners or stockholders equity amounts.2.Refer to the Salza Technology Corporation in Problem 1.A.Using average balance sheet account data, calculate the (a) current ratio, (b) quick ratio, (c) total debt-to-total assets ratio, and (d) the interest coverage ratio for 2016.B.Repeat the ratio calculations requested in Part A separately for 2015 and 2016 using year-end balance sheet account data. What changes, if any, have occurred regarding liquidity and financial leverage ?
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