The finance manager of Canadian Inc. (CI) has provided the following excerpts on Cl's financial position for three years: 2021 Year 2019 2020 (projected) Sales $3,500,000 $5,000,000 $5,000,000 Variable cost $1,400,000 $2,000,000 $2,000,000 Fixed cost $1,000,000 $1,000,000 $1,000,000 Equity ($50/share) $2,500,000 $2,500,000 $5,000,000 Debt (8%) $ 500,000 $3,000,000 $ 500,000 Tax rate 20% 20% 20% During 2020, Cl issued debt of $2,500,000. Near the end of 2020, Cl's management decided to issue equity of $2,500,000 and use the proceeds to retire the debt. The debt was issued on January 1, 2020, and was retired on January 1, 2021. Required: a) Determine Cl's net income for 2019 and 2020 and its projected net income for 2021. (3 marks) b) For each of 2019, 2020, and 2021, calculate the following ratios: i. degree of operating leverage (1.5 marks) ii. degree of financial leverage (1.5 marks) iii. degree of total leverage (1.5 marks) c) Comment on any trends that you observe in the leverage measures. (2.5 marks)