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). Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Chevron Corporation for the year ended December 31, 2013 (amounts in billions).

1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Chevron Corporation for the year ended December 31, 2013 (amounts in billions). (Decreases should be indicated by a minus sign. Enter your answers in billions (i.e., 10,000,000,000 should be entered as 10). Round your percentage answers to 1 decimal place.)

2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues.

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 Chevron Corporation for the year ended December 31, 2013 (amounts in billions).

For the Year Ended December 31 Change in 2013 2012 Dollars Percentage $ Total Revenues 280 297 % % Costs of Crude Oil and Products 118 123 Other Operating Costs % 59 53 Income before Income Tax Expense 103 121 % Income Tax Expense 20 26 % $ % 83 95 Net Income EA CHEVRON CORPORATION Income Statements (dollars in billions) For the Year Ended December 31 2013 2012 Total Revenues Costs of Crude Oil and Products Other Operating Costs Income before Income Tax Expense $ 280 297 118 % 123 59 % 53 % 103 121 % Income Tax Expense % 20 26 95 Net Income $ $ 83 2013 $215 120 2012 $234 Total Revenues Costs of Crude Oil and Products 125 Other Operating Costs Income before Income Tax Expense Income Tax Expense 61 56 34 53 17 21 $ 17 $ 32 Net Income Required: 1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place.) Gross Profit Percentage 2013 2012 2-a. Compute the net profit margin for each year. (Round your percentage answers to 1 decimal place.) Net Profit Margin 2013 2012 9 f$160 billion in 2013 and $134 billion 3-a. Chevron reported average net fixed assets places.) 2012. Compute the fixed asset turnover ratios for both years. (Round your answers to decimal Fixed Asset Turnover 2013 2012 4-a. Chevron reported average stockholders' equity of $150 billion in 2013 and $134 billion in 2012. Compute the return on equity ratios for both years. (Round your percentage answers to 1 decimal place.) Return on Equity (ROE) 2013 % 2012 %