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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). Lets see whether these changes are reflected in the income statement of Chevron Corporation for the year ended December 31, 2013 (amounts in billions).

	2013			2012
Total Revenues	$	295		$	309
Costs of Crude Oil and Products		123			126
Other Operating Costs		57			52
Income before Income Tax Expense		115			131
Income Tax Expense		25			31
Net Income	$	90		$	100

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1-a. Compute the gross profit percentage for each year. (Round your answers to 1 decimal place.) 1-b. Assuming that the change from 2012 to 2013 is the beginning of a sustained trend, is Chevron likely to earn more or less gross profit from each dollar of sales in 2014?

	More Gross Profit
	Less Gross Profit

2-a. Compute the net profit margin for each year. (Round your percentage answers to 1 decimal place.) 2-b. Did Chevron do a better or worse job of controlling expenses, other than the costs of crude oil and products, in 2013 relative to 2012?

	Better Job
	Worse Job

3-a. Chevron reported average net fixed assets of $240 billion in 2013 and $166 billion in 2012. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal places.) 3-b. Did the company better utilize its investment in fixed assets to generate revenues in 2013 or 2012?

	2013
	2012

4-a. Chevron reported average stockholders equity of $230 billion in 2013 and $166 billion in 2012. Compute the return on equity ratios for both years. (Round your percentage answers to 1 decimal place.) 4-b. Did the company generate greater returns for stockholders in 2013 or 2012?

	2013
	2012

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