Assessing Solvency Select two companies in the same industry, such as General Motors and Ford, and analyze their statements of cash flows for the most recent 2 years. Use annual reports available in your library or from electronic databases such as the SEC EDGAR database, company homepages on the World Wide Web, or Internet news sources. Calculate appropriate ratios and use the notes or management discussion and analysis to explain any unusual items. Assess the ability of the companies to meet current obligations and their capacity to meet additional debt servicing requirements (payments of interest and principal) if the companies were to issue new debt. To what extent are the companies able to finance possible expansion internally without having to resort to external financing?