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 Bronze, Incorporated 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 Bronze earn more gross profit per dollar of revenue in 2018 compared to 2017? 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 Bronze, Incorporated for the year ended December 31, 2018 (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 decimal place.) BRONZE, INCORPORATED Income Statements (amounts in billions) For the Year Ended December 31 Revenues Costs of Purchased Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income $ $ 2018 188 $ 108 57 23 7 16 $ 2017 158 85 63 10 10 Change in Dollars Percentage % % % % % %
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 Bronze, Incorporated 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 Bronze earn more gross profit per dollar of revenue in 2018 compared to 2017? 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 Bronze, Incorporated for the year ended December 31, 2018 (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 decimal place.) BRONZE, INCORPORATED Income Statements (amounts in billions) For the Year Ended December 31 Revenues Costs of Purchased Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income $ $ 2018 188 $ 108 57 23 7 16 $ 2017 158 85 63 10 10 Change in Dollars Percentage % % % % % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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 Bronze, Incorporated 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 Bronze earn more gross profit per dollar of revenue in 2018 compared to
2017?
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 Bronze, Incorporated for the year ended December 31, 2018 (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.)
BRONZE, INCORPORATED
Income Statements
(amounts in billions)
For the Year Ended December 31
Revenues
Costs of Purchased Crude Oil and Products
Other Operating Costs
Income before Income Tax Expense
Income Tax Expense
Net Income
$
$
2018
188 $
108
57
23
7
16
$
2017
158
85
63
10
10
Change in
Dollars Percentage
%
%
%
%
%
%
Transcribed Image Text: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 Bronze, Incorporated 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 Bronze earn more gross profit per dollar of revenue in 2018 compared to
2017?
Complete this question by entering your answers in the tabs below.
Req 1
Req
Req 2B
Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal
place.)
BRONZE, INCORPORATED
Income Statements
(amounts in billions)
For the Year Ended December 31
2018
Revenues
Costs of Purchased Crude Oil and Products
Other Operating Costs
Income before Income Tax Expense
Income Tax Expense
Net Income
$
$
188
108
57
23
7
16
%
%
%
%
%
%
$
$
2017
158
85
63
10
10
%
%
%
%
%
%
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