Income statements for Siam Foods, Inc. from 2018 to 2020 appear below.

a. Enter the data into your worksheet and calculate the degree of operating leverage for each year.

b. Calculate the degree of financial leverage for each year.

c. Calculate the degree of combined leverage for each of the three years. Does it appear that Siam Food’s leverage measures have been increasing or decreasing over this period?

d. Create a line chart that shows how the various leverage measures have changed over this three-year period.

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Siam Foods, Inc. Annual Income Statements For the Years 2018 to 2020 ($ in millions) Revenue Variable Costs Fixed Costs Earnings Before Interest and Taxes Interest Expense Income Before Income Taxes Provision for income taxes Net Income Preferred dividend Net Income Available to Common Shareholders Shares Outstanding Earnings per Share Tax Rate 2018 2019 2020 7,632 8,544 9,828 5,724 6,408 7,371 512 512 512 1,945 240 1,705 426 1,279 15 1,264 1,396 240 1,156 289 867 15 852 300 2.84 25% 1,624 240 1,384 346 1,038 15 1,023 300 3.41 25% 300 4.21 25%