The average price of a gallon of gas in 2018 increased $0.30 (12.4 percent) from...
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Accounting
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 Fossil Company 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 Fossil earn more gross profit per dollar of revenue in 2018 compared to 2017?
FOSSIL COMPANYIncome Statements(amounts in billions)For the Year Ended December 31
2018 2017 Change in Dollars Percentage
Revenues $201 $170 %
Costs of Purchased Crude Oil and Products 115 91 %
Other Operating Costs 61 68 %
Income before Income Tax Expense 25 11 %
Income Tax Expense 7 %
Net Income $18 $11 %
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