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E13-1 Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses [LO 13-2, LO 13-3, LO 13-5) The average price of a gallon of gas

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E13-1 Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses [LO 13-2, LO 13-3, LO 13-5) The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3,34 in 2014 to $2.40 in 2015). Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions) 2.a. Conduct a vertical analysis by expressing each line as a percentage of total revenues 2.6. Excluding income tax and other operating costs, did Insignia earn more profit per dollar of revenue in 2015 compared to 2014? Complete this question by entering your answers in the tabs below. Red Reg 2 Red 20 Conducta hartontal analysis by calculating the year over year changes in each line item, expressed in dollars and in percentages for the income statement of a Corporation for the year ended December 31, 2015 (mounts in billions) (Decent should be indicated by a mission Enter your answers in the 10,000,000,000 should be entered 10. Round Bercentage va decina plece INSIGNIA CORPORATION Income Statements amounts in billion For the Year Ended December 31 2015 Change in Dollar Percentage 2014 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 2B Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions). (Decreases should be indicated by a minus sign. Enter your answers in billions (ie., 10,000,000,000 should be entered as 10). Round percentage values to 1 decimal place.) INSIGNIA CORPORATION Income Statements (amounts in billions) For the Year Ended December 31 + Change in Dollars Percentage 2015 $ 124 % 2014 $ 268 164 51 62 Revenues Cost of Crude Oil and Products Other Operating costs Income before Income Tax Expense Income Tax Expense Net Income % % 54 8 63 % 0 $ 46 17 $ % % 8 $ le Reg 2A > Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal place.) INSIGNIA CORPORATION Income Statements (amounts in billions) For the Year Ended December 31 2015 Revenues $ 124 % Cost of Crude Oil and Products 62 % Other Operating costs 54 % Income before Income Tax Expense 8 % Income Tax Expense 0 % Net Income $ 8 % $ % 2014 268 154 51 % 63 46 17 % % $

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