The income statement and balance sheet for the last four fiscal years of La Corronga S.A. are shown below. The company needs to prepare a financial evaluation of its recent results and has contracted you for that purpose. Using selected financial ratios and statements of changes in financial position evaluate the company's performance in recent years. For the calculation of the financial ratios that require it, use the average of the amounts shown in the balance sheet at the beginning and end of the corresponding period. Show the entire procedure performed and formulas used.

Income Statement 1995 1994 3 600 3 050 550 1997 4 500 1996 4 300 3 650 4 000 3 395 605 3 830 670 650 100 110 122 132 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Financial expenses Income before taxes Income taxes (40%) Net income 79 80 87 93 52 60 63 81 231 250 272 306 128 142 151 146 191 213 227 218 Balance Sheet 1994 1995 1996 1997 30 30 15 5 190 196 260 340 380 398 480 630 700 800 800 875 1 300 1 424 1 555 1 850 175 250 295 440 175 211 235 292 Cash and cash equivalents Accounts receivable Inventories Net fixed assets Total Assets Accounts payable Accruals payable Short-term bank loan Long-term debt Total current liabilities Capital stock Retained earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 100 100 135 210 300 300 300 300 750 861 965 1 242 100 100 100 100 450 490 463 563 508 608 550 590 1 300 1 424 1 555 1 850