Analyze the income statement line items. What do the trends imply about the operations of the business?

1994 1995 1996 1997 Average Revenue $ 1,776,348.00 $ 1,973,980.00 $2,159,812.00 $2,650,041.00 $2,140,045.25 Total Cost of Revenue $ 702,436.00 $ 878,130.00 $ 894,705.00 $1,029,652.00 $ 876,230.75 Gross Profit $ 1,073, 912.00 $1,095,850.00 $1,265, 107.00 $1,620,389.00 $1,263,814.50 Operating Expense $ 785,934.00 $ 811,952.00 $ 968,012.00 $1,323,678.00 $ 972, 394.00 EBITDA $ 287,978.00 $ 283,898.00 $ 297,095.00 $ 296,711.00 $ 291,420.50 Depreciation $ 119,811.00 $ 136,228.00 $ 142,324.00 $ 171,319.00 $ 142,420.50 EBIT $ 168, 167.00 $ 147,670.00 $ 154,771.00 $ 125,392.00 $ 149,000.00 Interest Expense $ (27,820.00) $ (33,912.00) $ (44,545.00) $ (37,580.00) $ (35,964.25) EBT $ 140,347.00 $ 113,758.00 $ 110,226.00 $ 87,812.00 $ 113,035.75 Distribution To Shareholders $ (60,000.00) $ (46,700.00) $ (95,000.00) $ (27,660.00) $ (57,340.00) Earnings Retained $ 80,347.00 $ 67,058.00 $ 15,226.00 $ 60,152.00 $ 55,695.75 Table 1 Anually Income Statement % Change CAGR 49.18% 14.26% 46.58% 13. 60% 50.89% 14.70% 68.42% 18. 98% 3.03% 1.00% 42.99% 12.66% -25.44% -9.32% 35.08% 10.54% -37.43% - 14.47% -53.90% -22.75% -25.13% -9.20% 1994 1995 1996 1997 Average Revenue $ 1,776,348.00 $ 1,973,980.00 $2,159,812.00 $2,650,041.00 $2,140,045.25 Total Cost of Revenue $ 702,436.00 $ 878,130.00 $ 894,705.00 $1,029,652.00 $ 876,230.75 Gross Profit $ 1,073, 912.00 $1,095,850.00 $1,265, 107.00 $1,620,389.00 $1,263,814.50 Operating Expense $ 785,934.00 $ 811,952.00 $ 968,012.00 $1,323,678.00 $ 972, 394.00 EBITDA $ 287,978.00 $ 283,898.00 $ 297,095.00 $ 296,711.00 $ 291,420.50 Depreciation $ 119,811.00 $ 136,228.00 $ 142,324.00 $ 171,319.00 $ 142,420.50 EBIT $ 168, 167.00 $ 147,670.00 $ 154,771.00 $ 125,392.00 $ 149,000.00 Interest Expense $ (27,820.00) $ (33,912.00) $ (44,545.00) $ (37,580.00) $ (35,964.25) EBT $ 140,347.00 $ 113,758.00 $ 110,226.00 $ 87,812.00 $ 113,035.75 Distribution To Shareholders $ (60,000.00) $ (46,700.00) $ (95,000.00) $ (27,660.00) $ (57,340.00) Earnings Retained $ 80,347.00 $ 67,058.00 $ 15,226.00 $ 60,152.00 $ 55,695.75 Table 1 Anually Income Statement % Change CAGR 49.18% 14.26% 46.58% 13. 60% 50.89% 14.70% 68.42% 18. 98% 3.03% 1.00% 42.99% 12.66% -25.44% -9.32% 35.08% 10.54% -37.43% - 14.47% -53.90% -22.75% -25.13% -9.20%