Question

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? Complete this question by entering your answers in the tabs below. 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.) Show less INSIGNIA CORPORATION Income Statements (amounts in billions) For the Year Ended December 31 Change in 2015 2014 Dollars Percentag Revenues $ 127 $ 203 Cost of Crude Oil and 117 Products Other Operating Costs Income before Income Tax 31 Expense Income Tax Expense 19 Net Income $ 4 $ 121 64 55 < Real Reg 2A >

Answer 1

Aus: 0 INSIGNIA CORPORATION Income Statements Camounts in billions) for the years Ended December 31 Change in 2015 | 2014 | Dollars Revenues $127 5203 ($76) Cost of crude oil and Products . $69 $117 ($53) other offerating costs 458 $59 55 +4 Income before Income Tax $4 1831 | (827) Ed pense Income Tax Expense $0 $19 ($19) Net Income 04 $ 12 1 (48) de Percentage (37.43) Y. (45.2904. 7.276. | (87.09% 16100)% 1(66.67)+. 4.00 . 57.63% "INGIG NIA CORPORATION Income Statements Comounts im billions) for the Year Ended December 31 2015 2014 Revenues $127 100% $ 203 Cost of cruide oil and rooducts $64 50.39.71 $ 117 | Other operatly Costs $59 46.454 $55 Income before Income Tax 1 84 3.1497.431 C Expense for come Tax Expense Oy $19 .. Net Income $4 3.14% $2 27.094 115.27%. so 19.354. 5.91%