(c) Please refer to the basic information of Distco given in the question and explain how you think that buying Distco can create value for the distribution company A. Moreover what can company A do to preserve value of Distco if you decide to buy Distco? (10 points) (b) The accountant of Distco recast the financial data based on the information in raw accounts and returned with the following five-year income statement for Distco (as illustrated in the table below). Please provide your detail evaluation on these income statements of Distco and what you would like to ask Distco. Be sure to look not only at aggregated net income from the business (which is slightly higher over the five-year period) but also at the margin. (14 points) Distco Summary Income Statement $000 Gross sales Year 1 Year 2 Year 3 Year 4 Year 5 4,662 5,1266,2296,641 6,978 Bad debt nil nil nil nil ni Net sales 4,662 5,126 6,2296,6416,978 3,846 4,260 5,3885,8576,183 81686684 784795 420 434 447 423 424 396 432394361 371 COGS Contribution margin SG&A Operating income Other income and interest on long- term debt -50 -40 -30 -20 -60 Net income 336 382 354 331351