2018 2017 Revenues $ 169 $ 144 Costs of Purchased...
90.2K
Verified Solution
Question
Finance
2018 2017
Revenues | $ 169 | $ 144 |
---|---|---|
Costs of Purchased Crude Oil and Products | 97 | 77 |
Other Operating Costs | 51 | 58 |
Income before Income Tax Expense | 21 | 9 |
Income Tax Expense | 6 | |
Net Income | $ 15 | $ 9 |
Required:
Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Insignia likely to earn more or less gross profit from each dollar of sales in 2019?
Compute the net profit margin for each year. Did Insignia do a better or worse job of controlling expenses other than the costs of crude oil and products in 2018 relative to 2017?
Insignia reported average net fixed assets of $344 billion in 2018 and $342 billion in 2017. Compute the fixed asset turnover ratios for both years. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 2017?
Insignia reported average stockholders equity of $154 billion in 2018 and $150 billion in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in 2018 or 2017?
1-a. Compute the gross profit percentage for each year. Note: Round percentage values to 1 decimal place. 1-b. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Insignia likely to earn more or less gross profit from each dollar of sales in 2019?
|
2-a. Compute the net profit margin for each year. Note: Round percentage values to 1 decimal place. 2-b. Did Insignia do a better or worse job of controlling expenses other than the costs of crude oil and products in 2018 relative to 2017?
|
3-a. Insignia reported average net fixed assets of $344 billion in 2018 and $342 billion in 2017. Compute the fixed asset turnover ratios for both years. Note: Round your answers to 2 decimal places. 3-b. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 2017?
|
4-a. Insignia reported average stockholders equity of $154 billion in 2018 and $150 billion in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. Note: Round percentage values to 1 decimal place. 4-b. Did the company generate greater returns for stockholders in 2018 or 2017?
|
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.