# Question: Use the information for Chevron Corporation in E13 1 to

Use the information for Chevron Corporation in E13- 1 to complete the following requirements.

Required:

1. Compute the gross profit percentage for each year (rounded to one decimal place). 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?

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 Chevron did a better or worse job of controlling expenses other than the costs of crude oil and products in 2013 relative to 2012.

3. Chevron reported average net fixed assets of $ 150 billion in 2013 and $ 130 billion in 2012. Compute the fixed asset turnover ratios for both years (round to two decimal places). Did the company better utilize its investment in fixed assets to generate revenues in 2013 or 2012?

4. Chevron reported average stockholdersâ€™ equity of $ 140 billion in 2013 and $ 130 billion in 2012. Compute the return on equity ratios for both years (expressed as a percentage with one decimal place). Did the company generate greater returns for stockholders in 2013 or 2012?

Required:

1. Compute the gross profit percentage for each year (rounded to one decimal place). 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?

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 Chevron did a better or worse job of controlling expenses other than the costs of crude oil and products in 2013 relative to 2012.

3. Chevron reported average net fixed assets of $ 150 billion in 2013 and $ 130 billion in 2012. Compute the fixed asset turnover ratios for both years (round to two decimal places). Did the company better utilize its investment in fixed assets to generate revenues in 2013 or 2012?

4. Chevron reported average stockholdersâ€™ equity of $ 140 billion in 2013 and $ 130 billion in 2012. Compute the return on equity ratios for both years (expressed as a percentage with one decimal place). Did the company generate greater returns for stockholders in 2013 or 2012?

**View Solution:**## Answer to relevant Questions

Cintas Corporation is the largest uniform supplier in North America. Selected information from its annual report follows. For the 2013 fiscal year, the company reported sales revenue of $ 4.3 billion and Cost of Goods Sold ...A condensed income statement for Electronic Arts and a partially completed vertical analysis follow. Required: 1. Complete the vertical analysis by computing each line item (a) â€“ (d) as a percentage of net revenues. Round ...You have the opportunity to invest $ 10,000 in one of two companies from a single industry. The only information you have is shown here. The word high refers to the top third of the industry; average is the middle third; low ...Speedy Company uses the double- declining- balance method to depreciate its property, plant, and equipment and Turtle Company uses the straight- line method. The two companies are exactly alike except for the difference in ...Use Excel to answer MC- 3. Round to the nearest dollar.Post your question