Question

10.00 points The average price of a gallon of gas in 2013 dropped S0.12 (3 percent) from 53.61 in 2012 (to $3.49 in 2013) 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 Chevron Corporation for the year ended December 31, 2013 (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 your percentage answers to 1 decimal place.]) Income Statements (dollars in billions) For the Year Ended December 31 Change in 2013 2012 Dollars 5 300313 124 Costs of Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income 119 59 137 122 28 32 96105 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round your percentage answers to 1 decimal place.) (dollars in billions) For the Year Ended December 31 2012 2013 5 300 119 %| $ 313 124 Costs of Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income 122 26 5 96 137 %| $ 105 2-b. Excluding income tax and other operating costs, did Chevron earn more profit per dollar of revenue in 2013 compared to 2012? O Yes O No

Answer 1

Part-1
Income Statement
	( $ in Billions)		Change in
	2013	2012	$	%
Total Revenue	300	313	-13	-4.15%
Cost of Crude Oil & Products	119	124	5	4.03%
Other Operating Cost	59	52	7	13.46%
Income Before Income Tax Expense	122	137	-15	-10.95%
Income Tax Expense	26	32	6	18.75%
Net Income	96	105	9	8.57%

Part-2 a
Income Statement
	( $ in Billions)		( $ in Billions)
	2013		2012
Total Revenue	300	100.00%	313	100.00%
Cost of Crude Oil & Proucts	119	39.67%	124	39.62%
Other Operating Cost	59	19.67%	52	16.61%
Income Before Income Tax Expense	122	40.67%	137	43.77%
Income Tax Expense	26	8.67%	32	10.22%
Net Income	96	32.00%	105	33.55%

2.b. NO.