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The average price of a gallon of gas in 2015 dropped SO 94 (28 percent) from $3.34 in 2014 to $240 in 2015) Let's see

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The average price of a gallon of gas in 2015 dropped SO 94 (28 percent) from $3.34 in 2014 to $240 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 bilion) Revenues Cor of Purchased Crude 031 and Products Other Operating costs Incone Before Income Tax Expense Income Tax Expense Net Incore 2015 1285 120 59 10 21 $45 2014 3301 124 55 122 19 Required: 1. Compute the gross prof 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 or $230 billion in 2015 and $162 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 $220 billion in 2015 and $162 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. Required 1 Required 2 Required 3 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 2014 to 2015 is the beginning of a sustained trends insignia likely to earn more or less gross profit from each dollar of sales in 2016? Gross Profit Percentage 2014 2015 Likely to earn in 2010? More Gross Profit Less Gross Pro Required 2 > 2015 or 2014? yes to the company generate greater retums for stockholders in Complete this question by entering your swers in the tabs below. Required Rodz Required 2-a. Compute the net profit margin for each year round your answers to decimal place.) 2-b. Did Insignia de a better or worse job of controlling expenses ather than the cost of crude od practs 2015 relatives 2014 Neft Mars 2 2014 2018 2.6. Controlling experi 2015 2014 Berb We Required Required) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 3 a. Insignia reported average net fixed assets of $230 billion in 2015 and 5162 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 3- Fixed Asset Tuinover 2014 2015 3-b Investment better utilized in 2015 or 2014? 2015 2014 2015 or 2014? yos ug the company generate greater returns for stockholders in Complete this question by entering your answers in the tabs below. Required: Required 2 Required Required 4 4-a. Insignia reported average stockholders' equity of $220 billion in 2015 and $162 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) 4-6. Did the company generate greater returns for stockholders in 2015 or 20147 4- Return on Equity (ROE) 2014 2015 4-6. Greater returns generated in 2014 or 2015? 2015 2014

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