Income Statements for Kroger from 2009 to 2011 appear below.

a. Enter the data into your worksheet. Assume that Cost of Goods Sold and Operating, General, and Administrative costs are variable.
Depreciation and Rent are fixed costs.
b. Given that Kroger is a grocery 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 Kroger's leverage measures have been increasing or decreasing over this period?
f. There is a spike in all leverage measures in FY 2010 (ending in January 2010). What might explain this spike?
g. Create a line chart that shows how the various leverage measures have changed over this three-year period.

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Kroger Company Annual Income Statements For the Fiscal Years 2009 to 2011 2009 2010 2011 Total Revenue Cost of Goods Sold Gross Profit Depreciation And Amortization Operating, General, And Administrative Rent Earnings Before Interest And Taxes Interest Expense Earnings Before Taxes Income Tax Expense Income Before Minority Interest Minority Interest Net Income 76,000 76,733 82,189 58,56458,958 63,927 17,436 17,775 18,262 1,442 1,525 1,600 12,884 14,511 13,829 651 2,182 448 1,734 601 1,133 648 1,091 502 589 532 57 13 70 659 2,451 485 1,966 1,249 0 1,249 1,116