The following statistics relate to Michgate, an electric utility:

2001 2000 1999

(In thousands of dollars, except per share)

Operating expenses $ 850,600 $ 820,200 $ 780,000 Operating revenues 1,080,500 1,037,200 974,000 Earnings per share 3.00 2.90 2.60 Cash flow per share 3.40 3.25 2.30 Operating property 3,900,000 3,750,000 3,600,000 Funded debt (long-term) 1,500,000 1,480,000 1,470,000 Net income 280,000 260,000 230,000 Required

a. Calculate the following for 2001, 2000, and 1999:

1. Operating ratio 2. Funded debt to operating property 3. Percent earned on operating property 4. Operating revenue to operating property

b. Comment on trends found in the ratios computed in (a).

c. Comment on the trend between earnings per share and cash flow per share.