The following comparative percentage income statements and balance sheets are available for Charger Products:

Required:
1. Explain why income from operations decreased in 2008 and 2009 while sales increased.
2. Determine whether the proportion of resources invested in the various asset categories changed.
3. Determine whether the proportion of capital supplied by creditors changed.
4. Indicate from what sources Charger secured the capital to finance its increase in current assets in2009.

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Charger Products Statements of Income Year Ended December 31 2009 2008 2007 Amount % Amount % Amount % $901170 100.0 $728035 100.0 $661850 1000 Cost of good sold $539,801 59.9 $439,005 60.3 $401,743 60.7 318,113 35.3 206,034 28.3 176,052 26.6 Revenues Costs and expenses: Selling and administrative 17,122 .918,201 2.5 7,208 2.6 9913 1.1 2912 04 1324)(0.2 6,221 .861,883 8.568,7 10.3 Interest Other expenses income Total costs and expenses $884,942 98.2 $666152 1.5 $593,679 89.7 Income before provision for income taxes Provision for income taxes Net income 4,506 0.5 1.3 39,314 5.4 44,344 6.7 23,8273.6 $11,715 Charger Products Comparative Balance Sheets December 31, ASSETS 2009 2008 2007 Amount % Amount % Amount % $147,129 3462,417 14.3 66,927 16.1 Current assets Investment Property, plant, and 0,925 6.6 95,589 21.9 91453 22.0 270,831 57.8 261,015 9.8 241,519 58.1 $468,565 100.0 $436,480 100.0 $415,695 100.0 equipment (net) Other assets 19,680 17,459 4.0 15,796 Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Long-term debt $68,410 14.6 S 29,244 6.7 28,683 6.9 152,284 325 162,807 37.3 152,976 36.8 $220,694 47.1 $192,051 44.0 $181,659 43.7 $183,209 39. $182,332 41.8 $171,266 41.2 Total liabilitie Common stock 138 62092 142 6277 151 Retained eamings equity $247,871 5.9 $244,429 56.0 $234,036 56.3 Total liabilities and stockholders' equity $468,565 100.0 $436,480 100.0 $415,695 100.0