It is now time to complete the Final Project! The benefit of completing this Final Project is that it will allow you to understand the impact on a corporation's financial statements after a merger or acquisition and how it affects shareholder wealth. This project is your opportunity to practically experience what you would expect to encounter on their job or as a consultant or independent accountant. Step 1. Assume that General Motors (GM) will merge with Ford Motor Company so that GM will be the surviving company. Step 2. Access the 2018 General Motors financial statement and the 2018 Ford Motors financial statement. Note: Ignore accounting standards (they are quite complicated) and legal requirements (such as anti-trust laws). Step 3. Create an Excel spreadsheet or a Word document with a table in which you have the following four columns. You can copy and paste this information into the spreadsheet or table and add across the columns. Column 1 Column 2 Column 3 Column 4 List the List all the List all the Add the assets, categories of the corresponding corresponding liabilities, and assets, liabilities, assot COMICSC1, Tamides, equity of both Note: Ignore accounting standards (they are quite complicated) and legal requirements (such as anti-trust laws). Step 3. Create an Excel spreadsheet or a Word document with a table in which you have the following four columns. You can copy and paste this information into the spreadsheet or table and add across the columns. Column 1 Column 2 Column 3 Column 4 List the List all the List all the Add the assets, categories of the corresponding corresponding liabilities, and assets, liabilities, assets, liabilities, assets, liabilities, equity of both and equity of and equity of and equity of companies. That GM and Ford's GM. Ford. will be the financial assets, liabilities, statements. and equity of the entire surviving company, GM. Step 4. Do the same as you did in Step 3, but for the income statements of GM and Ford. You can copy and paste this information into the spreadsheet and add across the four columns. Step 5. Perform a ratio and vertical analysis of the balance sheet and income statement of the combined company for the Current Ratio, Quick Ratio, Debt/Equity Ratio, and Return on Equity. Calculate the weighted average cost of capital for the new firm using the assumptions from Module 3. It is now time to complete the Final Project! The benefit of completing this Final Project is that it will allow you to understand the impact on a corporation's financial statements after a merger or acquisition and how it affects shareholder wealth. This project is your opportunity to practically experience what you would expect to encounter on their job or as a consultant or independent accountant. Step 1. Assume that General Motors (GM) will merge with Ford Motor Company so that GM will be the surviving company. Step 2. Access the 2018 General Motors financial statement and the 2018 Ford Motors financial statement. Note: Ignore accounting standards (they are quite complicated) and legal requirements (such as anti-trust laws). Step 3. Create an Excel spreadsheet or a Word document with a table in which you have the following four columns. You can copy and paste this information into the spreadsheet or table and add across the columns. Column 1 Column 2 Column 3 Column 4 List the List all the List all the Add the assets, categories of the corresponding corresponding liabilities, and assets, liabilities, assot COMICSC1, Tamides, equity of both Note: Ignore accounting standards (they are quite complicated) and legal requirements (such as anti-trust laws). Step 3. Create an Excel spreadsheet or a Word document with a table in which you have the following four columns. You can copy and paste this information into the spreadsheet or table and add across the columns. Column 1 Column 2 Column 3 Column 4 List the List all the List all the Add the assets, categories of the corresponding corresponding liabilities, and assets, liabilities, assets, liabilities, assets, liabilities, equity of both and equity of and equity of and equity of companies. That GM and Ford's GM. Ford. will be the financial assets, liabilities, statements. and equity of the entire surviving company, GM. Step 4. Do the same as you did in Step 3, but for the income statements of GM and Ford. You can copy and paste this information into the spreadsheet and add across the four columns. Step 5. Perform a ratio and vertical analysis of the balance sheet and income statement of the combined company for the Current Ratio, Quick Ratio, Debt/Equity Ratio, and Return on Equity. Calculate the weighted average cost of capital for the new firm using the assumptions from Module 3
