The average price of a gallon of gas in $2018$ increased $$0\mathrm{.}30(12\mathrm{.}4$ percent$)$ from $$2\mathrm{.}42$ in $2017$ to $$2\mathrm{.}72$ in $2018.$ Let's see whether

these changes are reflected in the income statement of Fawkes Manufacturing for the year ended December $31,2018($amounts in

billions$).$

Required:

Compute the gross profit percentage for each year. Assuming that the change from $2017$ to $2018$ is the beginning of a sustained

trend, is Fawkes likely to earn more or less gross profit from each dollar of sales in $2019?$

Compute the net profit margin for each year. Did Fawkes do a better or worse job of controlling expenses other than the costs of

crude oil and products in $2018$ relative to $2017.$

Fawkes reported average net fixed assets of $$354$ billion in $2018$ and $$352$ billion 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 $2017?$

Fawkes reported average stockholders' equity of $$164$ billion in $2018$ and $$160$ billion in $2017.$ The company has not issued

preferred stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in

$2018$ or $2017?$

Required $1$

$1-$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 Fawkes likely to earn more or less

gross profit from each dollar of sales in $2019?$

$2-$a$.$ Compute the net profit margin for each year. $($Round percentage values to $1$ decimal place.$)$

$2-$b$.$ Did Fawkes do a better or worse job of controlling expenses other than the costs of crude oil and products in $2018$

relative to $2017.$

Complete this question by entering your answers in the tabs below.

Required $2$

$3-$a$.$ Fawkes reported average net fixed assets of $$354$ billion in $2018$ and $$352$ billion in $2017.$ Compute the fixed asset

turnover ratios for both years. $($Round your answers to $2$ decimal places.$)$

$3-$b$.$ Did the company better utilize its investment in fixed assets to generate revenues in $2018$ or $2017?$

$4-$a$.$ Fawkes reported average stockholders' equity of $$164$ billion in $2018$ and $$160$ 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 $2017?$

SOLVE ALL $4$ PARTS!!!