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The Sterling Tire Company’s income statement for 20X1 is as follows:STERLING TIRE COMPANYIncome StatementFor the Year Ended December 31, 20X1Sales (38,000 tires at 96 each)3,648,000Variable costs (38,000 tires at 48)1,824,000Fixed costs580,000Earnings before interest and taxes (EBIT)1,244,000Interest expense59,000Earnings before taxes (EBT)1,185,000Income tax expense (30%)355,500Earnings after taxes (EAT)829,500a. Compute the degree of operating leverage. (Round your answer to 2 decimal places

SOLVED: ECD Food CompanyStatements of Financial PositionDecember 31, 2018 to 2020(In Thousands of P) 2020 2019 3|l| ASSETS 3|l| Current assets Cash and cash equivalents 31,254 29,733 Trade and other receivables 42,150 47,263 Inventories 25,862 26,179 Prepayments and other current assets 18,435 15,822 Total current assets 117.701 118,997 3|l| Noncurrent assets Property and equipment 148,659 139,268 Intangible assets 220,172 221,720

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