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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

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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 Insignia Corporation for the year ended December 31,2015 (amounts in billions). 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 Insignia 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 Insignia did a better or worse job of controlling expenses other than the costs of crude oil and products in 2015 relative to 2014. 3. Insignia reported average net fixed assets of $220 billion in 2015 and $158 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. Insignia reported average stockholders' equity of $210 billion in 2015 and $158 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 ? Complete this question by entering your answers in the tabs below. 1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place.) 1-b. Assuming that the change from 2014 to 2015 is the beginning of a sustained trend, is Insignia likely to earn more or less gross profit from each dollar of sales in 2016? 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 oll and products in 2015 relative to 2014. Complete this question by entering your answers in the tabs below. 3-a. Insignia reported average net fixed assets of $220 billion in 2015 and $158 billion in 2014. 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 2015 or 2014 ? Complete this question by entering your answers in the tabs below. 4-a. Insignia reported average stockholders' equity of $210 billion in 2015 and $158 billion in 2014. The company has not Issued preferred stock. 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 2015 or 2014

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