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The average price of a gallon of gas in 2005 jumped $.59 (39 percent) from $1.51

ID: 2357294 • Letter: T

Question

The average price of a gallon of gas in 2005 jumped $.59 (39 percent) from $1.51 in 2004 to $2.10 in 2005. Let's see whether these changes are reflected in the income statement of Chevron Corp. for the year ended December 31, 2005 (amounts in millions).

 

22,601  

29,501  

$ 14,939  

$ 15,208  

  
rev: 02-28-2011

Compute the gross profit percentage for each year. (Round your answers to 1 decimal place. Omit the "%" sign in your response.)

Compute the net profit margin for each year. (Round your answers to 1 decimal place. Omit the "%" sign in your response.)

Chevron reported average net fixed assets of $52.0 billion in 2005 and $46.7 billion in 2004. Compute the fixed asset turnover ratios for both years. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Chevron reported average stockholders' equity of $56.0 billion in 2005 and $42.8 billion in 2004. Compute the return on equity ratios for both years. (Round your answers to 1 decimal place. Omit the "%" sign in your response.)

 

  2005 2004   Total revenues $ 194,200   $ 156,300     Costs of crude oil and products 144,902   103,348     Other operating costs

22,601  

29,501  

  Income before income tax expense 26,697   23,451     Income tax expense 11,758   8,243       Net income

$ 14,939  

$ 15,208  

Explanation / Answer

52952

Gross Profit = Sales - Cost of Crude oil 2005 2004 Revenue - (A) 194200 156300 Cost of Crued Oil - (B) 144902 103348 Gross Profit - (C = A - B) 49298

52952

Gross Profit in Percentage - (C / A*100) 25.40% 33.90%
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