Problem 2 (\"Please type out answers and calculations**Times New Romans font with no M if using printscreen**'l'hank you!) You have been provided the following income statements for SpongeBob SquarePants Industries and Hello Kitty Incorporated. Sponge Bob Helo KittyI 2015 Income Statement ($600) Sales 13,730 11,263 Cost of Goods Sold 9,010 5,406 Fixed cosls 3,250 1,95 0 Depreciation 2,450 1,470 Earnings Before Interest and Tomes 4,070 2,442 Interest 3,065 1,839 Income Before Taxes 1,005 603 Income Taxes ' 402 ' 211 Net Income 603 392 Shares 01's 10:: 35 EPS 6.03 6.03 a. Calculate the degree of operating leverage for each rm. (Show your work!) In. Calculate the degree of nancial leverage for each rm. (Show your work!) c. Calculate the degree of combined leverage for each rm. (Show your work!) (I. If both firms were to experience a 15% increase in sales, what is the percentage change impact in the EPS and what is the new EPS for each rm. (Show your work!) 3. Which rm is more risky? (Explain your answers)