Name: Student ID: Summary income statements and balance sheets are presented for Ford and General Motors for fiscal year 2001 (In millions). For additional information, their Web sites (and ticker symbols) are www.ford.com (F) and www.gm.com (GM). Note that these numbers are for over all operations, not just automotive. Note: These financial statements are partial statements. Income Statement (in millions) Ford Ford GM GM Fiscal Year 12/31/2001 12/31/2000 12/31/2001 12/31/2000 Revenue $162,412 $170,064 $177,260 $184,632 COGS 125,706 140,499 130,942 145,664 Gross Profit 36,706 29,565 46,318 38,968 SG & A 13,602 11,847 23,302 22,252 Interest Expense 10,848 10,902 8,590 9,552 Tax Expense (2,151) 2,705 768 2,393 Net Income (5,453) 3,467 601 4,452 Balance Sheet (in millions) Ford Ford GM GM Fiscal Year 12/31/2001 12/31/2000 12/31/2001 12/31/2000 Cash & Marketable Securities $7,218 $4,851 $18,555 $10,284 Receivables, Trade (Net) 3,152 6,272 141,394 135,002 Inventories 6,191 7,514 10,034 10,945 Total Current Assets 36,260 39,310 193,843 208,920 Total Fixed Assets 33,121 37,508 34,908 33,977 Total Assets 276,543 284,421 323,969 303,100 Total Current Liabilities 44,546 43,327 64,246 63,156 Total Liabilities 268,757 265,811 304,262 272,925 Total Stockholders' Equity 7,786 18,610 19,707 30,175 Cash Flow Statement (in millions) Ford Ford GM GM Fiscal Year 12/31/2001 12/31/2000 12/31/2001 12/31/2000 Cash Flow from Operations $22,764 $33,764 $9,166 $10,871 Cash Flow from Investing (17,169) (9,867) (23,171) 11,313 Cash Flow from Financing (2,976) (8,521) 22,372 (890) (1) Common-size analysis - Given the information in Sheet 1 :a) Complete the following tables using common-size analysis; b) Summarize the highlights from common-size analysis for these companies and indicate possible red flags following the tables. Income Statement - Common Size Ford Ford GM GM Fiscal Year 12/31/2001 12/31/2000 12/31/2001 12/31/2000 Revenue 100% 100% 100% 100% COGS Gross Profit SG&A Net Income Balance Sheet - Common Size Ford Ford GM GM Fiscal Year 12/31/2001 12/31/2000 12/31/2001 12/31/2000 Cash & Marketable Securities Receivables, Trade (Net) Inventories Total Current Assets Fixed Assets, net Total Assets 100% 100% 100% 100% Total Current Liabilities Total Liabilities Total Equity Name: Student ID:

(2) Given the information in Sheet 1, Calculate the liquidity ratios for Ford and GM. Show calulations following the table. Ford GM Year 2001 2001 Current Quick Name: Student ID:

(3) Given the information in Sheet 1, a) Calculate the solvency ratios. Show Calculations following the table. b) Do you have any concerns about their abilities to meet their debt obligations? Ford GM Year 2001 2001 Liabilities to Equity Interest Coverage (Times Interest Earned) Name: Student ID:

(4) Given the information in Sheet 1, calculate the DuPont Model. Show calculations following the table. DuPont Model Ford GM Year 2001 2001 Profit Margin (PM) Asset Turnover (AT) Return on Assets (ROA) Financial Leverage (FL) Return on Equity (ROE)