Part 1:
|
(in millions)
|
Year 1
|
Year 2
|
Year 3
|
|
Sales
|
34,734
|
39,304
|
42,680
|
|
Cost of Goods Sold
|
33,550
|
37,852
|
40,648
|
|
Net Income
|
1,184
|
1,452
|
2,032
|
|
Assets
|
25,654
|
27,385
|
29,903
|
|
Total Debt
|
11,695
|
10,498
|
13,926
|
|
Equity
|
15,654
|
15,220
|
14,727
|
|
Operating Cash Flow
|
1,998
|
2,378
|
3,186
|
|
Investment Cash Flow
|
-2,781
|
-3,419
|
-4,049
|
|
Financing Cash Flow
|
-692
|
-287
|
-244
|
Required:Given the information in the table above, calculate the following:
- Profit margin on sales
- Return on assets
- Return on equity
- Total debt to total assets
- Total asset turnover
Explain and evaluate your results as they pertain to profitability, debt, and asset turnover for the company over a three-year period. Must be reported in excel and show all calculations.
Part 2: Report in a MS Excel document. Show all calculations and conclusions.
1. Identify two items or issues that cannot be derived from the financial statements of General Motors and Ford Motors. Explain why these items or issues would be of concern to investors and other stakeholders. In your rationale, address the specific interests of the different users of financial statements.
2. Compare and contrast General Motors and Ford Motors in terms of how well or how poorly they are performing in the areas of profit, debt, and asset turnover. Use appropriate ratios in your analysis. Indicate strategies for possible improvement in each area.