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Question: the average price of a gallon of gas in 2013...

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The average price of a gallon of gas in 2013 dropped $0.12 (3 percent) from $3.61 in 2012 (to $3.49 in 2013). Lets see whether these changes are reflected in the income statement of Chevron Corporation for the year ended December 31, 2013 (amounts in billions) 2013 2012 $230 $246 128 56 Total Revenues Costs of Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income 120 61 49 23 27 $ 26 35 Required: 1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place.) Gross Profit Percentage 2013 2012 1-b. Assuming that the change from 2012 to 2013 is the beginning of a sustained trend, is Chevron likely to earn more or less gross profit from each dollar of sales in 2014? More Gross Profit Less Gross Profit 2-a. Compute the net profit margin for each year. (Round your percentage answers to 1 decimal place.) Net Profit Margin 2013 20122-a. Compute the net profit margin for each year. (Round your percentage answers to 1 decimal place.) Net Profit Margin 2013 2012 2-b. Did Chevron do a better or worse job of controlling expenses, other than the costs of crude oil and products, in 2013 relative to 2012? OBetter Job Worse Job 3-a. Chevron reported average net fixed assets of $175 billion in 2013 and $140 billion in 2012. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal places.) Fixed Asset Turnover 2013 2012 3-b. Did the company better utilize its investment in fixed assets to generate revenues in 2013 or 2012? 2013 2012 4-a. Chevron reported average stockholders equity of $165 billion in 2013 and $140 billion in 2012. Compute the return on equity ratios for both years. (Round your percentage answers to 1 decimal place.) Return on Equity (ROE) 2013 2012

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