Question Three: ... (20 marks) Income Statements for Xcel Energy from 2011 to 2013 appear below. Xcel Energy Incorporated Annual Income Statements For the Year 2011 to 2013 (5 in millions) 2011 2012 2013 Reverse 10,655 10,128 10,915 Cost of revenue 5,186 4.534 5.135 Gross prale 5,469 5,524 5,780 Operation and maintenance 2.140 2.176 2,274 Depreciation and amortization 891 926 978 Other operating expenses 656 669 Operating income 1,782 1.823 1,84 Interest Expense 591 602 575 Other income 119 134 Income before income taxes 1,310 1,355 1,432 Provision for income taxes 468 450 484 Ner income 841 90s Preferred dividend Net Income available to common shareholders 34 905 948 Basic Shares Outstanding 485 488 496 Basic EPS 1.72 1.86 1.91 Tax Rate 35.73% 33 219 33.80% 160 948 Required: a. Enter the data into your worksheet. Assume that Cost of Revenue and Operation and Maintenance costs are variable. Depreciation and Other operating expenses are fixed costs. Ignore Other income when calculating EBT for the questions below. b. Given that Xcel Energy is a power company, would you expect that it would have more operating leverage or financial leverage? c. Calculate the degree of operating leverage for each year using the assumptions from part a. d. Calculate the degree of financial leverage for each year. e. Calculate the degree of combined leverage for each of the three years. Does it appear that Xcel's leverage measures have been increasing or decreasing over this period? f. Create a line chart that shows how the various leverage measures have changed over this three-year period