Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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). Required: 1. Conduct

image text in transcribed
image text in transcribed
image text in transcribed
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). 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 Insignia Corporation for the year ended December 31, 2015 (amounts in billions). 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax and other operating costs, did Insignia earn more profit per dollar of revenue in 2015 compared to 2014? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 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 Insignia Corporation for the year ended December 31, 2015 (amounts in billions). (Decreases should be indicated by a minus sign. Enter your answers in billions (.e., 10,000,000,000 should be entered as 10). Round percentage values to 1 decimal place.) Show less INSIGNIA CORPORATION Income Statements (amounts in billions) For the Year Ended December 31 Change in Dollars Percentage 2015 2014 Req 1 Req 2A Req 2B Conduct a horizontal analysis by calculating the year-over-year changes in each line item percentages for the income statement of Insignia Corporation for the year ended Decemt (Decreases should be indicated by a minus sign. Enter your answers in billions (i.e., 10,0 10). Round percentage values to 1 decimal place.) INSIGNIA CORPORATION Income Statements (amounts in billions) For the Year Ended December 31 Change in Dollars Percentage % 2015 2014 126 $ 252 63 145 $ % 59 53 Revenues Cost of Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income 4 54 41 % % % % 0 $ 4 $ $ 13 ( Req1 Req 2A > Req 1 Req 2A Req 2B Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Roun place.) INSIGNIA CORPORATION Income Statements (amounts in billions) For the Year Ended December 31 2014 2015 126 $ $ $ 252 % 63 145 % 59 53 % Revenues Cost of Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income % % % % % % 4 54 % 41 % $ $ 4 $ 13 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Cost Accounting

Authors: Edward J. Vanderbeck

16th edition

9781133712701, 1133187862, 1133712703, 978-1133187868

More Books

Students also viewed these Accounting questions

Question

=+ 3. What are adverse selection and moral hazard?

Answered: 1 week ago