Two-part finance question – calculate and evaluate financial


The subjoined is a abridgment of accomplishment data for the ABC Corporation aggravate a three-year time:

(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

Based upon the advice granted,  calculate the subjoined:

  • Profit loophole on sales
  • Return on assets
  • Return on equity
  • Total something-due to aggregate assets
  • Total asset turnover

Explain and evaluate your results as they pertain to useability, something-due, and asset turnaggravate for the gang aggravate a three-year time.

 

Part Two: Issues and Interests of Investors and Other Stakeholders; Dissection of Gang Performance

Required:

  1. Identify two items or issues that cannot be acquired from the financial statements of General Motors and Ford. Explain why these items or issues would be of regard to investors and other stakeholders. In your rationale, address the local interests of the contrariant users of financial statements.
  2. Compare and contrast Gneral Motros and Ford in conditions of how well-behaved-behaved or how poorly they are performing in the areas of use, something-due, and asset turnover. Use mismisappropriate ratios in your dissection. Indicate strategies for feasible advancement in each area.