The average price of a gallon of gas in 2013 dropped $ 0.12 (3 percent) from $ 3.61 in 2012 (to $ 3.49 in 2013). Let€™s see whether these changes are reflected in the income statement of Chevron Corporation for the year ended December 31, 2013 (amounts in billions).

Required:
1. Conduct a horizontal analysis by calculating the year- over- year changes in each line item, expressed in dollars and in percentages (rounded to one decimal place). How did the change in gas prices compare to the changes in Chevron€™s total revenues and costs of crude oil and products?
2. Conduct a vertical analysis by expressing each line as a percentage of total revenues (round to one decimal place). Excluding income tax and other operating costs, did Chevron earn more profit per dollar of revenue in 2013 compared to 2012?

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2013 2012 Revenues Costs of Crude Cil and Products Other Operating Costs Income before Incorme Tax Expense Income Tax Expense Net Income $220 143 41 36 15 s 21 $231 149 36 46 20 $ 26 一