ACC561 Ford Motor Vs GM Financial Statement Analysis & Decision Making Paper
Purpose of Assignment
The activity requires students to perform research and analysis on competing companies and the potential implications of international standards. This real-world analysis is key to understanding how a company’s profitability, liquidity, and solvency can be useful for all users. Students also learn to analyze financial statements and use managerial tools to make decisions from an investor’s and creditor’s standpoint.
Resources: U.S. Securities and Exchange Commission (SEC), websites such as Annual Reports (AnnualReports.com) Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products.
Select two competing companies, one of which must be an international company, and locate annual reports for these two companies on the Internet. (Do Not Choose Walmart and Target)
Research the two companies on the Internet and download the Income Statement, Statement of Shareholders’ Equity, Balance Sheet, and Statement of Cash Flows.
Develop a minimum 525-word examination of the financial statements and include the following: (525 minimum words for the entire assignment)
Make a 5-year trend analysis for each company, using 2011 as the base year, of:
Net sales.
Net income. Discuss the significance of the trend results.
Compute for 2015 and 2014 the:
Debt to assets ratio.
Times interest earned. How would you evaluate each company’s solvency?
Compute for 2015 and 2014 the:
Profit margin.
Asset turnover.
Return on assets.
Return on common stockholders’ equity. How would you evaluate each company’s profitability?
Evaluate the financial opportunity presented by the companies. If you were a creditor, which company would you be more likely to lend money to? Defend your decision.
Which company would you recommend as an investment? Discuss the items that were considered in your decision.
Research global implications for the international company selected. How might changing environmental factors affect organizational choices?
Consider the ethical climate (internal or external) of your chosen companies. Describe the ethical issues and impact on the stakeholders. What has been/is being done to resolve these issues? Do you agree with these methods for resolution? If not, what might you do differently?.
Show your work in Microsoft Word (all writing and calculations must be included in one file in the format of word document).
Include the four financial statements along with your assignment. (PDF file and submit separately)
Format your assignment consistent with APA guidelines.
“Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results.”
Recent Comments