The following statistics relate to Michgate, an electric utility:
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2007
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2006
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2005
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(In thousands of dollars, except per share)
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Operating expenses
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$850,600
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$820,200
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$780,000
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Operating revenues
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1,080,500
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1,037,200
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974,000
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Earnings per share
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3.00
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2.90
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2.60
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Cash flow per share
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3.40
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3.25
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2.30
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Operating property
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3,900,000
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3,750,000
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3,600,000
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Funded debt (long-term)
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1,500,000
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1,480,000
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1,470,000
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Net income
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280,000
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260,000
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230,000
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Required
a. Calculate the following for 2007, 2006, and 2005:
1. Operating ratio
2. Funded debt to operating property
3. Percent earned on operating property
4. Operating revenue to operating property
b. Comment on trends found in the ratios computed in (a).
c. Comment on the trend between earnings per share and cash flow per share