INVESTMENT ANALYSIS FROM FINANCIAL STATEMENTS Demonstrate and refresh skills in evaluating companies by using their financial statements and form 10K. ASSIGNMENT Assume you have immense amounts to invest, and you have reduced you investment choices to two companies. The selected two companies are Ford Motor Company and General Motors. Compute the following ratios and use Vertical Analysis

LIQUIDITY

• Current
• Acid Test Ratio

EFFICIENCY

• Accounts receivable Turnover
• Inventory Turnover
• Total Asset Turnover

SOLVENCY

• Debt to Equity

PROFITABILITY

• Profit Margin
• Gross margin
• Return on Total Assets
• Return on Owners Equity

Select which company to buy and defend that conclusion.