Income Statements for Xcel Energy from 2011 to 2013 appear below. Xoel Energy Incorporated Anmal fncome...

 

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Income Statements for Xcel Energy from 2011 to 2013 appear below. Xoel Energy Incorporated Anmal fncome Statemcnts For the Years 2011 2013S is millions) 2011 2012 10,655 2013 10,915 Revenue 10,128 Cost of reveme 4534 Gress profr Operation and maintenance Depreciation and amortization Other operating expenses Operating inceme Iterest Expense Oder income Income before tmcme tae Provision for income tanes 5,469 2140 2176 2274 891 926 656 1,782 1323 591 S75 119 134 160 1,355 450 484 468 841 Net inceme Preferred dividend Net teceme avalable to common sharehelders Basic Shares Outstanding Basic EPS Tax Rate 834 995 485 488 496 1.72 35.73% 3321s 33 Required: a. Enter the data into your worksheet. Assume that Cost of Revenue and Operation and Maintenance costs are variable. Depreciation and Other operating expenses are fixed costs. Ignore Other income when calculating EBT for the questions below. b. Given that Xcel Energy is a power company, would you expect that it would have more operating leverage or financial leverage? c. Calculate the degree of operating leverage for each year using the assumptions from part a. d. Calculate the degree of financial leverage for each year. e. Calculate the degree of combined leverage for each of the three years. Does it appear that Xcel's leverage measures have been increasing or decreasing over this period? f. Create a line chart that shows how the various leverage measures have changed over this three-year period Income Statements for Xcel Energy from 2011 to 2013 appear below. Xoel Energy Incorporated Anmal fncome Statemcnts For the Years 2011 2013S is millions) 2011 2012 10,655 2013 10,915 Revenue 10,128 Cost of reveme 4534 Gress profr Operation and maintenance Depreciation and amortization Other operating expenses Operating inceme Iterest Expense Oder income Income before tmcme tae Provision for income tanes 5,469 2140 2176 2274 891 926 656 1,782 1323 591 S75 119 134 160 1,355 450 484 468 841 Net inceme Preferred dividend Net teceme avalable to common sharehelders Basic Shares Outstanding Basic EPS Tax Rate 834 995 485 488 496 1.72 35.73% 3321s 33 Required: a. Enter the data into your worksheet. Assume that Cost of Revenue and Operation and Maintenance costs are variable. Depreciation and Other operating expenses are fixed costs. Ignore Other income when calculating EBT for the questions below. b. Given that Xcel Energy is a power company, would you expect that it would have more operating leverage or financial leverage? c. Calculate the degree of operating leverage for each year using the assumptions from part a. d. Calculate the degree of financial leverage for each year. e. Calculate the degree of combined leverage for each of the three years. Does it appear that Xcel's leverage measures have been increasing or decreasing over this period? f. Create a line chart that shows how the various leverage measures have changed over this three-year period

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Working sheet Formula Xcel Energy Incorporated Annual Income Statements For the Years 2011 to 2013 ... View the full answer