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Presented in the line graphs below are trends in revenues and expenses for each of three companies over their first six years of operations.

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Presented in the line graphs below are trends in revenues and expenses for each of three companies over their first six years of operations. The balance of the Retained Earnings account at the end of each year is presented by the bars. Each company has the same amount of revenues in Year 1 and the same amount of expenses in Year 1. Assume no dividends were paid by any of the companies.

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