horizontal analysis by calculating the year-over-year changes in each line item,

Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015)

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, 2015 (amounts in billions). (Decreases should be indicated by a minus sign)

INSIGNIA CORPORATION
Income Statements
(amounts in billions)
For the Year Ended December 31
Change in
2015
2014
Dollars
Percentage
Revenues
$
123
$
235
%
Cost of Crude Oil and Products
62
135
%
Other Operating Costs
59
56
Income before Income Tax Expense
2
44
Income Tax Expense
32
Net Income
$
2
$
12
%
Transcribed Image Text:INSIGNIA CORPORATION Income Statements (amounts in billions) For the Year Ended December 31 Change in 2015 2014 Dollars Percentage Revenues $ 123 $ 235 % Cost of Crude Oil and Products 62 135 % Other Operating Costs 59 56 Income before Income Tax Expense 2 44 Income Tax Expense 32 Net Income $ 2 $ 12 %
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