The average price of a gallon of gas in 2013 dropped $0.12 (3 percent) from $3.61 in 2012 (to $3.49 in 2013). Lets see whether these changes are reflected in the income statement of Insignia Corporation for the year ended December 31, 2013 (amounts in billions).

	2013	2012
Total Revenues	$	265		$	285
Costs of Crude Oil and Products		123			126
Other Operating Costs		57			53
Income before Income Tax Expense		85			106
Income Tax Expense		37			45
Net Income	$	48		$	61

1-a.Compute the gross profit percentage for each year.(Round your answers to 1 decimal place.)

2012 ___________________%

2013 ___________________%

1-b.Assuming that the change from 2012 to 2013 is the beginning of a sustained trend, is Insignia likely to earn more or less gross profit from each dollar of sales in 2014? More Or Less Gross Profit?

2-a. Compute the net profit margin for each year. (Round your answers to 1 decimal place.)

2012 _________%

2013___________%

2-b.Did Insignia do a better or worse job of controlling expenses, other than the costs of crude oil and products, in 2013 relative to 2012? Better or Worse?

3-a. Insignia reported average net fixed assets of $210 billion in 2013 and $154 billion in 2012. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal places.)

2012_________%

2013 _________%

3-b.Did the company better utilize its investment in fixed assets to generate revenues in 2013 or 2012?

2012 or 2013

4-a.Insignia reported average stockholders equity of $200 billion in 2013 and $154 billion in 2012. Compute the return on equity ratios for both years. (Round your answers to 1 decimal place.)

2012___________%

2013___________%

4-b.Did the company generate greater returns for stockholders in 2013 or 2012?