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 Insignia Corporation 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 Insignia likely to earn more or less gross profit from each dollar of sales in $2019?$

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

the costs of crude oil and products in $2018$ relative to $2017.$

Insignia reported average net fixed assets of $$360$ billion in $2018$ and $$358$ 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 $2017?$

Insignia reported average stockholders' equity of $$170$ billion in $2018$ and $$166$ 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 $2017?$