EXXON	2012	2013
GROSS PROFIT	117,044 MIL	105,566 MIL
OPERATING PROFIT	49,881 MIL	40,301 MIL
NET INCOME	32,580 MIL	44,880 MIL
P/E RATIO	8.94	12.71
P/S RATIO	0.89	0.98
CHEVRON	2012	2013
GROSS PROFIT	81,863 MIL	77,153 MIL
OPERATING PROFIT	39,492 MIL	27,726 MIL
NET INCOME	26,179 MIL	21,423 MIL
P/E RATIO	8.61	10.04
P/S RATIO	0.98	0.98

1. Compare and contrast the limitations and usefulness of the single-step income statement and the multi-step income statement. 2. Analyze the gross profit, operating profits, and net income of both Exxon and Chevron for 2012 and 2013. Of the two (2) companies, speculate on the main reasons why one (1) company may have been more profitable than the other company. 3. Compute each companys price-earnings (P / E) ratio and price-to-sales ratio (PSR). Identify primary estimates or assumptions that could result in overstated earnings, and use the ratio data to compare the quality of each companys earnings. 4. Review notes to both Exxons and Chevrons financial statements. Next, identify at least two (2) notes pertaining to the income statement, and explain the main way in which the notes in question could influence your decision to invest in each of the companies. Provide a rationale to justify your decision