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E13-2 (Algo) Computing and Interpreting Profitability Ratios [LO 13-4, LO 13-5] The average price of a gallon of gas in 2018 increased $0.30 (12 4

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E13-2 (Algo) Computing and Interpreting Profitability Ratios [LO 13-4, LO 13-5] The average price of a gallon of gas in 2018 increased $0.30 (12 4 percent) from $2.42 in 2017 to $272 in 2018 . Let's see whiether these changes are reflected in the income statement of Mango Corporation for the year ended December 31,2018 (amounts in bilitions) Required: 1. Compute the gross profit percentage for each year. Assuming that the change from 2017 to 2018 is the beginning of a sustained trend, is Mango likely to earn more or less gross profit from each dollar of sales in 2019 ? 2. Compute the net profit margin for each year. Did Mango do a better or worse job of controlling expenses other than the costs of crude oil and products in 2018 relative to 2017 3. Mango reported average net fixed assets of $374 billion in 2018 and $372 bilion in 2017 . Compute the fixed asset turnover ratios for both years. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 2017 ? W. Mango reported average stockholders' equity of $184 billion in 2018 and $180 billion in 2017 . The company has not issued preferre stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in 2018 or 2017? Complete this question by entering your answers in the tabs below. 1-a. Compute the gross profit percentage for each year. (Round percentage values to 1 decimal place.) 1-b. Assuming that the change from 2017 to 2018 is the beginning of a sustained trend, is Mango likely to earn more or tess gross profit from each dollar of sales in 2019? Complete this question by entering your answers in the tabs below. 2-a. Compute the net profit margin for each year. (Round percentage values to 1 decimal place.) 2-b. Did Mango do a better or worse job of controlling expenses other than the cosits of crude oil and products in 2018 rolative 2017 Complete this question by entering your answers in the tobs below. 3-a. Mango reported average net fixed assets of $374 bilion in 2018 and $372 bllion in 2017 . Compute the fixed asset turnover ratios for both yeare. (Round your answers to 2 decimal placeq.) 3-b. Did the company better utilize its investment in fixed assets to generate revenuer in 2018 of 2017 ? Complete this question by entering your answers in the tabs below. 4-a. Mango reported average stockholders' equity of $184 billion in 2018 and $180 billion in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. (Round percentage values to 1 decimal place.) 4-b. Did the company generate greater returns for stockholders in 2018 or 2017

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