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 $ 290 $ 305 Costs of Crude Oil and Products 121 125 Other Operating Costs 61 55 Income before Income Tax Expense 108 125 Income Tax Expense 22 30 Net Income $ 86 $ 95 Required:

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

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 Gross Profit Less Gross Profit

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

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 Job Worse Job

3-a. Insignia reported average net fixed assets of $235 billion in 2013 and $164 billion in 2012. 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 2013 or 2012? 2013 2012 4-a. Insignia reported average stockholders equity of $225 billion in 2013 and $164 billion in 2012. Compute the return on equity ratios for both years. (Round your answers to 1 decimal place.)

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