Review General Motors annual report for 2018. As you complete this assignment, assume that GM is projecting a 10% increase in sales revenue next year. Assume all expenses except interest and taxes will increase in a linear manner (i.e., all expenses except interest and taxes will increase by 10%), and all assets will increase in a linear manner.

Step 1. Prepare a report that includes an analysis for whether or not GM will need additional funding to acquire the additional long-term assets necessary to support the increased sales. The following calculations will need to be completed in order to prepare this report:

Prepare a pro forma income statement, balance sheet, and cash flow statement.

Perform a ratio analysis of the pro forma statements.

Step 2. Recommend whether GM should undertake the expansion. Justify your recommendation.