Consider General Motors and Ford, both automobile manufacturers, examine their financial data online and answer the following questions.
1.Select three items from the income statements that you feel would be important to an investor. Analyze and compare your two companies in terms of these items and how they are performing relative to each other and in general.
2.Select three items from the balance sheet that you feel would be important to an investor. Analyze and compare your two companies in terms of these items. How they are performing relative to each other and in general? Provide a rationale for your conclusions.
Based upon information contained in the Statement of Cash Flows for General Motors and Ford:
- What are the two largest investing activities and financing activities for each firm?
- Compare and contrast the investing and financing activities of the two companies.
- Evaluate the investing and financing strategies of the two firms? Provide a rationale for your opinion as to the effectiveness of each of the strategies.