Team Project: Analyzing Financial Statements = Acquire the financial statements of a large manufacturing Wo company, such as General Motors, a large electric or gas utiles ity company, such as Duke Energy Corporation or Ameren Corporation (previously Union Electric Company), and a large bank, such as Wells Fargo & Company. Prepare a short report in which you include the following:

a. Do an in-depth analysis of the cash and other financial asset balances held by each company. Be sure to review the balance sheet accounts and all related footnotes.

b. Look at the cash flow statements to see if you can determine the major sources of cash inflows and outflows during the past year. Did the companies borrow money during the year? Did they issue stock?

c. Make a list comparing the operating characteristics of the companies that might affect the amount of financial assets they would have on hand. For example, which of the three businesses would be likely to have the most dependable and predictable cash inflows and outflows? Which of the companies would realize most of its profits from holding financial assets?

d. Compare the cash and financial asset balances and inflows and outflows of the companies for the last 2 years. Are the balances reported consistent with the expectations you developed in the preceding step? Review the management discussion that precedes the financial statements to see if you are able to find explanations for any situations that are not consistent with your expectations.

e. Analyze the bad debt expense reported by each of the companies during the last 2 years. Are there major differences between the companies? Are these differences in the amounts reported consistent with your list of operating characteristics? Explain why any differences may have occurred.