Overview:

Ford & General Motors

Prepare an in-depth analysis of the two companies(Ford and General Motors). The analysis will be comprised of several elements, such as both companies most recent financial statements, as well as learning all you can about the companies in terms of their products, success within their industry, and any current news that would be relevant to your advisory firm. In your financial analysis, you will be analyzing sales, manufacturing costs, net income, cash, etc. Your analysis will also require you to answer the questions listed below.

You will also take into account other factors that would influence your decision whether or not to recommend purchase of this stock. Some items in this category might include the companys green initiatives, a new product or service, recent cost cutting moves, or consolidation or merger with another company. Finding this information will be part of your research for the project. Start with the 10K reports on the companies.

Requirements:

The written final report will ultimately recommend to the investment firm which of the two companies should be considered for acquisition purposes. You will support the reasons for recommending your choice by performing the necessary financial analysis and answering the questions below. The more detail and depth you include in your analysis, the better. I expect you to do a good job of explaining your position.

Resources required for the project:

The report must be a minimum of 5 pages, a maximum of 8, and it must be type-written using MS Word or comparable software, no more than 12-point font and double-spaced with margins of no more than one inch. (you may add supporting financials if needed beyond the 5 pages)

Questions:

Part 1 Trend Analysis

Like size the financials (vertical analysis) and then look at the 3 year trends.

Using the data in question 1, what do you think the activity for the next two years will be.

Part 2 COGS (if product based)

Comment on the similarities and/or differences in the ratio results across both years between the two companies. How is COGS impact the business success (DL, DM, MOH)

. Part 3 Operational Expenses

Looks at the companies expenses tied to Sales and Administration and the operational side of the company. How is the company managing their non-production operations.

Part 4 Ratios

Look at our Financial Analysis lectures and use Ratio Analysis to provide insights into areas of concern or areas of strength.

Managerial Accounting