9. The financial effect of the management of the operating cycle. Below are the last three years' financial statements for Sentec Inc., a distributor of electrical fixtures. Income Statements (in thousands) Year 2 Year 3 Year 1 $22,100 $24,300 $31,600 Sales 17,600 19,300 25,100 Cost of goods sold 4,000 5,000 Selling, general, and administrative expenses 3,750 100 150 Depreciation expense 1,350 900 Earnings before interest and tax 650 130 260 110 Net interest expense 1,090 540 770 Earnings before tax 430 220 Income tax expense 320 460 S 660 Earnings after tax 180 200 200 Dividends