Use the information for Suncor Energy Inc. in E13-1 to complete the following requirements.

Required:

1. Compute the gross profit percentage for each year (one decimal place). Assuming that the change for 2016 to 2017 is the beginning of a sustained trend, is Suncor likely to earn more or less gross profit from each dollar of sales in 2018?

2. Compute the net profit margin for each year (expressed as a percentage with one decimal place). Given your calculations here and in requirement 1, explain whether Suncor did a better or worse job of controlling expenses other than the costs of crude oil and products in 2017 relative to 2016.

3. Assume Suncor reported average net fixed assets of $85 billion in 2017 and $74 billion in 2016. Compute the fixed asset turnover ratios for both years (rounded to two decimal places). Did the company better utilize its investment in fixed assets to generate revenues in 2017 or 2016?

4. Assume Suncor reported average shareholders? equity of $82 billion in 2017 and $73 billion in 2016. Compute the return on equity ratios for both years (expressed as a percentage with one decimal place). Did the company generate greater returns for shareholders in 2017 or 2016?

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2017 2016 Total Revenues $273 $221 171 Costs of Crude Oil and Products 133 Other Operating Costs 59 56 32 Income Before Income Tax Expense 43 Income Tax Expense 19 13 $ 19 $ 24 Net Income