Solution-Conduct a vertical analysis by expressing each line

Conduct a vertical analysis by expressing each line

Reference no: EM13865726

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). Required:

1. Conduct a horizontal analysis by calculating the year- over- year changes in each line item, expressed in dollars and in percentages (rounded to one decimal place). How did the change in gas prices compare to the changes in Chevrons total revenues and costs of crude oil and products?

2. Conduct a vertical analysis by expressing each line as a percentage of total revenues (round to one decimal place). Excluding income tax and other operating costs, did Chevron earn more profit per dollar of revenue in 2013 compared to 2012?

Reference no: EM13865726

Questions Cloud

Explain the major airline market segments : Explain the major airline market segments by applying the marketing concepts of segmentation, targeting, and positioning and briefly describe the branding and positioning strategies of United and Southwest Airlines. Do they build brand loyalty? If s..

What type of material is generally used to cast tool marks : Explain the procedures for processing and recovering tool mark evidence from the following: Object that can be moved and Fixed object that cannot be moved. What type of material is generally used to cast tool marks

Would you expect the inventory turnover ratio to increase : A manufacturer reported an inventory turnover ratio of 8.6 last year. During the current year, management introduced a new inventory control system that was expected to reduce average inventory levels by 25 percent without affecting sales volume. Giv..

What steps should bennie gordon : What steps should Bennie Gordon take to ensure that the accounting matter is adequately addressed by the company? Why do you suggest those steps be taken? What are the ethical obligations of Bennie Gordon Sarah Higgins and Sam Thornton?

Conduct a vertical analysis by expressing each line : Conduct a horizontal analysis by calculating the year- over- year changes in each line item, expressed in dollars and in percentages (rounded to one decimal place). How did the change in gas prices compare to the changes in Chevrons total revenues an..

Source transformation : Use Source Transformation to find V1 and V2?

Identify corporate wrongdoing report it to the appropriate : Should we regard Mr. ABC has a new caped crusader or an opportunist? Explain the reasons for your response Is it ethical for a Wall Street insider to purposefully analyze financial data of an unrelated company in order to identify corporate wrongdoi..

Describe the stages of group development : Describe the stages of group development

Evaluate economic issues and problems based on the bible : Develop your own framework and process/method for evaluating economic issues and problems based on the Bible. Describe your approach in enough detail that the reader can apply it to real world problems.

User Account

All Pages

Conduct a vertical analysis by expressing each line

Reference no: EM13865726

Reference no: EM13865726

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT