Super Power Company reported the statistics in its statements of income shown at the top of the next page.

Required

a. Calculate the operating ratio and comment on the results.

b. Calculate the times interest earned and comment on the results.

c. Perform a vertical common-size analysis of revenues, using total revenue as the base, and comment on the relative size of the component parts.

2001 2000 Electric revenues:

Residential $11,800,000 $10,000,000 Commercial and industrial 10,430,000 10,000,000 Other 600,000 500,000 22,830,000 20,500,000 Operating expenses and taxes* 20,340,000 18,125,000 Operating income 2,490,000 2,375,000 Other income 200,000 195,000 Income before interest deductions 2,690,000 2,570,000 Interest deductions 1,200,000 1,000,000 Net income $ 1,490,000 $ 1,570,000

*Includes taxes of $3,200,000 in 2001 and $3,000,000 in 2000.