Imaging you are the manager of a small distribution company A and you are considering to buy a medium-sized distribution company, Distco, to expand your business. Some basic information of Distco: the COGS and SG&A determinations have changed every year in the past. They have three warehouses with two permanent staffs per warehouse (One to take orders and arrange shipping and one to package up orders) Temporary staff might be needed for busy times. In addition, the head office has a president, a receptionist, two bookkeepers and a two-person sales team. 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 (S000) Gross sales Bad debt Year 1 Year 2 Year 3 Year 4 Year 5 4,662 5,126 6,229 6,641 6,978 ni ni ninil 4,662 5,126 6,229 6,6416,978 3,846 4,260 5,388 5,857 6,183 816 866 841 784 420 434 447 423424 Net sales Contribution margin SG&A Operating income 396 432 394 361 371 Other income and interest on long-60 -50 40 3020 term debt 336 382 354 331 351