The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let's see whether these changes are reflected in the income statement of Chevron Corporation for the year ended December 31, 2015 (amounts in billions). 15 2014 $ 210 120 60 Revenues Cost of Purchased Crude Oil and Products Other Operating costs Income before Income Tax Expense Income Tax Expense Net Income uni unu OO 20 Required: 1. Compute the gross profit percentage for each year. Assuming that the change from 2014 to 2015 is the beginning of a sustained trend, is Chevron likely to earn more or less gross profit from each dollar of sales in 2016? 2. Compute the net profit margin for each year. Given your calculations here and in requirement 1, explain whether Chevron did a better or worse job of controlling expenses other than the costs of crude oil and products in 2015 relative to 2014. 3. Chevron reported average net fixed assets of $185 billion in 2015 and $174 billion in 2014. Compute the fixed asset turnover ratios for both years. Did the company better utilize its investment in fixed assets to generate revenues in 2015 or 2014? 4. Chevron reported average stockholders' equity of $155 billion in 2015 and $153 billion in 2014. 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 2015 or 2014