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?

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• Req 1
• Req 2A
• Req 2B

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 (i.e., 10,000,000,000 should be entered as 10). Round percentage values to 1 decimal place.)

INSIGNIA CORPORATION
Income Statements
(amounts in billions)
For the Year Ended December 31
			Change in
	2015	2014	Dollars	Percentage
Revenues	$125	$272	$147	117.6	%
Cost of Crude Oil and Products	63	156	93	147.6	%
Other Operating Costs	59	53	(6)	(10.2)	%
Income before Income Tax Expense	3	63	60	2,000.0	%
Income Tax Expense	0	26	(26)	(100.0)	%
Net Income	$3	$37	$34	1,133.3	%

Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal place.)

INSIGNIA CORPORATION
Income Statements
(amounts in billions)
For the Year Ended December 31
	2015			2014
Revenues	$125	100.0	%	$272	100.0	%
Cost of Crude Oil and Products	63	50.4	%	156	57.3	%
Other Operating Costs	59	47.2	%	53		%
Income before Income Tax Expense	3	2.4	%	63		%
Income Tax Expense		0.0	%	26		%
Net Income	$3	2.4	%	$37		%

Thank you for your help!