The average price of a gallon of gas in 2005 jumped $0.43 (24 percent) from $1.8

Question

The average price of a gallon of gas in 2005 jumped $0.43 (24 percent) from $1.81 in 2004 to $2.24 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).

Prepare a vertical income statement and calculate the year-to-year changes in each line item expressed in dollars and in percentages. (Round your percent values to 1 decimal place. Omit the "$" & "%" signs in your response.)

CHEVRON CORP
Income Statements
(in millions)
Year Ended December 31

Prepare a vertical income statement and calculate the year-to-year changes in each line item expressed in dollars and in percentages. (Round your percent values to 1 decimal place. Omit the "$" & "%" signs in your response.)

Explanation / Answer

                                          CHEVRON CORP
                Comparative Income Statements(Vertical Anlysis)
                                           (in millions)
                                    Year Ended December 31
                                                                         % of Net Sales  
                                         2005           2004     2005    2004
Total revenues                 $198,200    $155,300    100      100
Costs of crude oil
and products                      140,902   104,948     71.1    67.6
Other operating costs           32,101       29,801    16.2    19.2  
Income before income
tax expense                        25,197        20,551     12.7   13.2
Income tax expense            11,098          7,223      5.6     4.7  
Net income                    $14,099     $13,328     7.1    8.5  

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