The average price of a gallon of gas in 2018 increased $0.30 (12.4 percent) from $2.42 in 2017 to $2.72 in 2018.

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 Fawkes Manufacturing for the year ended December 31, 2018 (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 Fawkes earn more gross profit per dollar of revenue in 2018 compared to 2017?

he average price of a gallon of gas in 2018 increased $0.30 (12.4 percent) from $2.42 in 2017 to $2.72 in 2018.

Revenues

Cost of purchased crude oil and products

Other operating cost

Income before income tax expense

income tax expense

Net Income