E13-1 Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses [LO 13-2, LO 13-3, LO 13-5) 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). 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 Insignia Corporation for the year ended December 31, 2013 (amounts in billions). (Decreases should be indicated by a minus sign. Enter your answers in billions (i.e., 10,000,000,000 should be entered as 10). Round percentage values to 1 decimal place.) INSIGNIA CORPORATION Income Statements (dollars in billions) For the Year Ended December 31 Change in 2013 2012 Dollar's Percentage Total Revenues S 275 S 290 % Costs of Crude Oil and Products 124 1 301 Other Operating costs 61 55 56 Income before Income Tax Expense 9 0 1 08 Income Tax Expense 41 471 Net Income S 49 S 61 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal place.) INSIGNIA CORPORATION Income Statements (dollars in billions) For the Year Ended December 31 2013 Total Revenues $ 275 % Costs of Crude Oil and Products 124 Other Operating costs 61 Income before Income Tax Expense 90 Income Tax Expense 41 Net Income $ 49 $ I 2012 293 1307 55 108 47 61 26 $ 2-b. Excluding income tax and other operating costs, did Insignia earn more profit per dollar of revenue in 2013 compared to 2012? Yes No