COMPANY ANALYSIS #2
.docx
keyboard_arrow_up
School
University of Texas, Permian Basin *
*We aren’t endorsed by this school
Course
6301
Subject
Accounting
Date
Feb 20, 2024
Type
docx
Pages
12
Uploaded by CaptainRaccoon3590
GENERAL MOTORS CO. AND FORD MOTORS CO.
COM
PANY
ANAL
YSIS 2
Janeth Kiongozi, Lathaniel Bastin
| ACCOUNTING ANALYSIS 6301.501 FALL 2023
1.
Mission Statements
1.
Mission statements.
General Motor Co.’s Mission Statement:
“To earn customers for life by building brands that inspire passion and loyalty through not only
breakthrough technologies but also by serving and improving the communities in which we live
and work around the world.”
This mission statement shows GM’s holistic approach to addressing external factors that
influence the business. The main points of General Motors’ corporate mission statement are as
follows:
1.
Earning customers for life
2.
Brands that inspire passion and loyalty
3.
Breakthrough technologies
4.
Serving and improving communities
General Motor Co.’s vision for the future is a world with zero crashes, zero emissions and zero
congestion, which guides our growth-focused strategy to invest in electric vehicles (EVs) and
autonomous vehicles (AVs), software-enabled services and subscriptions and new business
opportunities, while strengthening our market position in profitable internal combustion engine
(ICE) vehicles, such as trucks and sport utility vehicles (SUVs).
Janeth Kiongozi, Lathaniel Bastin
| ACCOUNTING ANALYSIS 6301.501 FALL 2023
Ford Motor Co.’s Mission Statement: “To help build a better world, where every person is free to move and pursue their dreams.”
Ford Motor Co. is committed to making this purpose evident in every part of our business, from
the way we source our materials, to the vehicles we create, to the services we provide, to the
interactions we have with our customers, employees, and communities. Our purpose has set us
apart as a company for more than a century and it guides our vision for the future.
They aim to shorten the distance between where you are and where you want to go, connect
people down the road and over the horizon, discover possibilities, and enjoy the thrill, adventure,
and pride of moving freely.
Ford+ is our plan for growth and value creation, intended to transform our company to win in
this new era of electric and connected vehicles by developing always-on customer relationships,
must-have connected products and services, and by leading the electric vehicle revolution. Ford+
serves as our roadmap for the next 10-15 years as we move with speed and ambition to fulfill our
purpose.
Source: Sec fillings and google.
In summary: Both companies emphasize customer-centricity and a commitment to improving the
world in their mission statements. Also, both companies aim to contribute positively to society
and have clear strategies for the future, with GM's vision placing a strong emphasis on zero
crashes, emissions, and congestion, while Ford outlines its Ford+ plan for growth and innovation
in the era of electric and connected vehicles.
2.
Financial Data
Income Statement (
USD in Millions.)
GENERAL MOTORS CO.
FORD MOTORS CO.
Total Revenue
156,735
158,057
Gross Profit
29,843
23,660
Net Income
9,708
(2,152)
Cost of goods sold (COGS)
126,892
134,397
Balance Sheet
(USD in Millions)
GENERAL MOTOR CO.
FORD MOTOR CO.
Total Assets at the end of the
year
$ 264,037
$ 255,884
Total Assets at the beginning
of the year
$ 244,718
$ 257,035
Total Liabilities
$ 192,110
$ 212,717
Stockholders’ Equity
$ 71,927
$ 43,167
Total Cash
$ 19,153
$ 25,134
Net
Property,
Plant,
Equipment at the end of the
year
$ 45,248
$ 37,265
Net
Property,
Plant,
Equipment at the beginning
of the year
$ 41,115
$ 37,139
Statement of Cash Flow (
USD in Millions)
GENERAL MOTORS CO.
FORD MOTOR CO.
Operating Cash Flows
16,043
6,853
Investing Cash Flows
(17,882)
(4,347)
Financing Cash Flows
383
2,511
Total Cash
21,948
25,340
Cash at the beginning of the
period
23,542
20,737
Discussion: Does the Total Cash in the Statement of Cash Flow matches the Cash amount in
Balance Sheet? If not, why? The total cash in the statement of cash flow differs from total cash in the balance sheet because
the statement of cash flow includes both unrestricted and restricted cash, while the balance sheet
may only reflect movement in unrestricted cash.
Restricted cash refers to funds that are set aside for a specific purpose, such as collateral for a
loan or legal requirements. Unrestricted cash refers to cash that’s readily available to be spent for any purpose and has not
been pledged as collateral for a debt or other purpose.
Restricted cash is not readily available for general use by the company, and therefore, it is not
included in the cash flow statement. However, it is included in the cash and cash equivalent line
item on the balance sheet because it is still part of the company’s overall cash position.
Example in the data given for Ford motors co. in statement of cash bellow after the cash from
beginning of the year there is a column for cash, cash equivalents, restricted cash and restricted
cash equivalents, period increase(decrease), including exchange rate effect which amount
$4,603,000,000.
3.
Selected Ratios
The ratios that we selected are as follows:
GROSS PROFIT MARGIN
(value in USD Million)
General Motor Co. gross profit margin Gross profit Margin= revenue
−
cost of goods sold
revenue
*100
Gross Profit Margin= $
156,735
−
$
126,892
$
156,735
*100
The gross profit margin for General Motors Co. is 0.190404185
19.04%
Ford Motors Co. gross profit margin Gross profit Margin= revenue
−
cost of goods sold
revenue
*100
Gross Profit Margin= $
158,057
−
$
134,397
$
158,057
*100
The gross profit margin for Ford Motors Co. is 0.149692832
14.97%
RETURN ON ASSETS
(value in USD Million)
General Motor Co. ROA Return on Asset (ROA)= Net income
Average asset
Return on Asset (ROA)= Profit margin* Asset turnover
Return on Asset (ROA)= net income
sales
*
sales
average asset
Return on Asset (ROA)= $
9,708
$
156,735
*
$
156,735
$
264,037
+
$
244,718
2
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
PROMOTING MYSELF (Chapter 8)• Create an outline for each of the following promotional strategies you plan to use as you begin your career. o Advertising: What does your resume look like? What does it say about you? Also consider what your social media profile says about you. If a prospective employer were to look at your Facebook, LinkedIn, or Twitter profile, would they like what they saw? Would it reflect the image of a thoughtful, driven professional?o Sales Promotion: Do the companies you want to work for offer unpaid internships? If so, how do you go about applying for them? How can you adjust your personal financial situation to take an unpaid internship if it helps to advance your career?o Personal-Selling: What will you say in an interview that will convince a prospective employer that he or she is better off with you than without you?o Public Relations: What do your colleagues think about you? Would your professors or classmates recommend you? Think about what you can do to…
arrow_forward
V5.
arrow_forward
Question:
The articles below is my classmate discussion post can you please give explanation why you agree with the articles below?
According to the SEC 10-K, Procter & Gamble organizes its business into five
strategic business units (SBUs) and five reportable segments as per U.S. GAAP.
These segments cover Beauty, Grooming, Health Care, Fabric & Home Care, and
Baby, Feminine & Family Care. The SBUS oversee global brand strategies, product
innovations, and supply chain management, with direct profit responsibility for key
markets termed "Focus Markets." They also drive growth in other markets,
referred to as "Enterprise Markets." The MD&A discusses business performance
by region, including North America, Europe, Greater China, Latin America, Asia
Pacific, and India, Middle East, and Africa (IMEA), offering insights into
geographical revenue contributions and market dynamics. Their largest customer
is Walmart Inc. and its affiliates, which accounted for consolidated net sales of…
arrow_forward
QUESTION 6
Which of the following statements would be part of a vision statement?
Company XYZ is a globally recognized financial institution providing
services now and in the future.
ABC Memorial Hospital provides an appropriate mix of services to the
residents of ABC region and surrounding areas.
BCD Company makes, distributes, and sells the finest-quality widgets.
To be the largest and most complete antique radio community site on the
Internet.
arrow_forward
1.11 Match the term with the correct definition
1. A philosophy designed to integrate all organizational areas to provide customers with superior products and services in achieving organizational goals. It requires improving quality and eliminating defects and waste
A. ERP
2. Use the internet for business functions such as sales and customer service. It allows companies to reach customers around the world.
B. JIT
3. Evaluation of a company's performance by economic, social and environmental impact.
C. E-commerce
4. Software system that integrates all company functions, departments and data into a single system.
D. Total quality management
5. A system in which the company produces products exactly when they are needed to meet needs. Suppliers deliver materials when they are required to start the production process and finished products are completed at the right time for delivery to customers.
E. Three pillars
arrow_forward
Incorporating Stakeholder Impacts into Business SustainabilityAnalyses and DecisionsJack’s Apps Company researches, develops, and sells traditional applications (i.e., apps) formiddle-aged mobile phone device users. In an attempt to tap into the large young adult appmarket to boost sales and advertising revenues, Jack’s CFO, Daniel, is considering hiringstudents from area high schools and universities to drastically increase the innovativeness ofthe company’s apps. Specifically, Daniel hopes that Jack’s new student employee pool will makeJack’s next wave of phone apps inventions popular with young adults by providing innovativeservices, such as exchanging payments for late-night food deliveries, arranging informal datingand other social gatherings, exchanging perspectives on different professors, and identifyingunusual debit card purchase patterns to assist with early fraud detection notification. Basedon cost estimates from Jack’s finance team and surveys of its new target customers…
arrow_forward
Strategy
The table below contains the names of six companies.
Required:
For each company, categorize its strategy as being focused on customer intimacy, operational excellence, or product leadership, if you wish to improve your understanding of each company’s customer value proposition before completing the exercise, review its most recent annual report. To obtain electronic access to this information, perform an Internet search on each company’s name followed by the words “annual report.”
arrow_forward
PURPOSE:The concept of creating shared value (CSV) was articulated by Michael Porter and Mark Kramer. They describe it as “Creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success.”34 This approach to business is especially relevant in today’s business world as the connection between businesses and their customers becomes stronger through social media attention and easy access to information on the internet. Many customers not only care about the product or service value but also want to know how the company operates and what it stands for. From the company’s perspective, it is also very important to understand that not all profit is equal. Porter and Kramer state, “Profits involving a social purpose represent a higher form of capitalism—one that will…
arrow_forward
1. Explain how the organizations culture would influence the design of a new Accounting Information system for a company.
2. An university has various schools and departments that offer various Degree and Diploma courses. The University has been offering courses through two modes of study that include the Full-Time classes and Evening Classes. The university management has been evaluating the possibility of introducing a new mode of study where the university will offer the students the option of selecting 100% online classes option. The University will deploy this 100% online classes option by using Zoom video conferencing software. Other software’s and platforms that the university will use for the 100% online classes mode like google classroom and other softwares. The university has invited you as an expert of accounting information systems to help in the design and implementation of a new revenue transaction cycle system that will be used for the new 100% online classes option mode…
arrow_forward
"As global competition increases, businesses are being pressured to reach higher levels of productivity to price their products and services competitively.' Explain how management accountants can play a role in helping management meet these challenges.
Correct full answer from experts please help me #####################@$#####$$
arrow_forward
please explain and provide co
arrow_forward
Advanced Management Accounting
arrow_forward
Moving to Green Computing Your organization is a leader in the development of renewable energy sources based on enhanced geothermal systems and is viewed as a champion in the fight to reduce carbon emissions. The organization employs over 25,000 people worldwide and operates three global data centers, one each in the United States, Europe, and Southeast Asia. The CEO has asked all her C level executives for input on a proposed strategy to become a leader in green computing.
Critical Thinking Questions
Identify two additional tactics the organization might take to accelerate its move toward green computing?
Identify the pros and cons or any issues associated with your proposed tactics.
arrow_forward
I need help with question 6 on how to create the customer pivot table as given. Also, can you provide the steps of how to do that in Excel? Also, please provide the steps in order to solve the problem for Finance.
arrow_forward
Please draw balance scorecard.
arrow_forward
Q.# 1: Martin Luther King. Jr. said, "I have a dream," and articulated that dream in such a way of thousands followed him in his efforts, in spite of overwhelming obstacles. To establish a successful new venture, the corporate entrepreneur must have a dream and overcome obstacles to achieving it by selling the dream to others. It means that he must have vision which he can inculcate among others. Read carefully the above statement and discuss characteristics of aCorporate Entrepreneur.
arrow_forward
Outsourcing Call Centers; Strategy; Ethics; Present-Value Analysis (Chapter 12) Merchants’Bank (MB) is a large regional bank operating in 634 locations in the southeastern United States.Until 2014, the bank operated a call center for customer inquiries out of a single location in Atlanta,Georgia. MB understood the importance of the call center for overall customer satisfaction andmade sure that the center was managed effectively. However, in early 2013, it became clear that thecost of running the center was increasing very rapidly, along with the firm’s growth, and that someissues were arising about the quality of the service. To improve the quality and dramatically reducethe cost of the service, MB moved its call center to Bangalore, India, to be run by an experiencedoutsourcing firm, Naftel, which offers similar services to other banks like MB.The Naftel contract was for 5 years, and in late 2017 it was time to consider whether to renewthe contract, change to another call center…
arrow_forward
Technology advancements have fueled the global economy and impacted the ways in which businesses design their supply chains One cup of Starbucks coffee is comprised of materials from various countries and represents numerous supplier relationships In the age of the global village, designing supply chains is similar to conducting a massive orchestra’ achieving harmony requires strategy, planning, and impeccable execution Think about an organization’s supply chain with which you are familiar or have worked with in the past in order to discuss the following:
1 Describe the organization’s supply chain List the key components and include the key stakeholders, vendors, technologies, and if applicable, modes of transportation that are involved
2 How might you redesign the company’s supply chain for maximum effectiveness and harmony? Outline the key inputs and outputs of your supply chain and distinguish the suppliers that merit partnership status Justify their status…
arrow_forward
Recommended Implementation Process
Please do the following:
Introduce yourself to your peers by sharing something unique about your background. Explain how you expect this course will help you move forward in your current or future career.
Use the Internet or Strayer University Library databases and Internet, to select and review a firm that has multiple lines of businesses. For example, review the FedEx Corporation to see how it is a multiple-line business organization.
You reviewed the FedEx Corporation's 2019 annual report and focused on the detailed accounting information. In this week's reading, Lin demonstrates that successful implementation of the shipping company's financial accounting information management systems must go through three steps; implementation of management system module; implementation of financial accounting function; and implementation of management accounting function.
Review the recommended implementation suggested by Lin in Design and Implementation of…
arrow_forward
( explain all point of question with deeply explanation )
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Related Questions
- PROMOTING MYSELF (Chapter 8)• Create an outline for each of the following promotional strategies you plan to use as you begin your career. o Advertising: What does your resume look like? What does it say about you? Also consider what your social media profile says about you. If a prospective employer were to look at your Facebook, LinkedIn, or Twitter profile, would they like what they saw? Would it reflect the image of a thoughtful, driven professional?o Sales Promotion: Do the companies you want to work for offer unpaid internships? If so, how do you go about applying for them? How can you adjust your personal financial situation to take an unpaid internship if it helps to advance your career?o Personal-Selling: What will you say in an interview that will convince a prospective employer that he or she is better off with you than without you?o Public Relations: What do your colleagues think about you? Would your professors or classmates recommend you? Think about what you can do to…arrow_forwardV5.arrow_forwardQuestion: The articles below is my classmate discussion post can you please give explanation why you agree with the articles below? According to the SEC 10-K, Procter & Gamble organizes its business into five strategic business units (SBUs) and five reportable segments as per U.S. GAAP. These segments cover Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. The SBUS oversee global brand strategies, product innovations, and supply chain management, with direct profit responsibility for key markets termed "Focus Markets." They also drive growth in other markets, referred to as "Enterprise Markets." The MD&A discusses business performance by region, including North America, Europe, Greater China, Latin America, Asia Pacific, and India, Middle East, and Africa (IMEA), offering insights into geographical revenue contributions and market dynamics. Their largest customer is Walmart Inc. and its affiliates, which accounted for consolidated net sales of…arrow_forward
- QUESTION 6 Which of the following statements would be part of a vision statement? Company XYZ is a globally recognized financial institution providing services now and in the future. ABC Memorial Hospital provides an appropriate mix of services to the residents of ABC region and surrounding areas. BCD Company makes, distributes, and sells the finest-quality widgets. To be the largest and most complete antique radio community site on the Internet.arrow_forward1.11 Match the term with the correct definition 1. A philosophy designed to integrate all organizational areas to provide customers with superior products and services in achieving organizational goals. It requires improving quality and eliminating defects and waste A. ERP 2. Use the internet for business functions such as sales and customer service. It allows companies to reach customers around the world. B. JIT 3. Evaluation of a company's performance by economic, social and environmental impact. C. E-commerce 4. Software system that integrates all company functions, departments and data into a single system. D. Total quality management 5. A system in which the company produces products exactly when they are needed to meet needs. Suppliers deliver materials when they are required to start the production process and finished products are completed at the right time for delivery to customers. E. Three pillarsarrow_forwardIncorporating Stakeholder Impacts into Business SustainabilityAnalyses and DecisionsJack’s Apps Company researches, develops, and sells traditional applications (i.e., apps) formiddle-aged mobile phone device users. In an attempt to tap into the large young adult appmarket to boost sales and advertising revenues, Jack’s CFO, Daniel, is considering hiringstudents from area high schools and universities to drastically increase the innovativeness ofthe company’s apps. Specifically, Daniel hopes that Jack’s new student employee pool will makeJack’s next wave of phone apps inventions popular with young adults by providing innovativeservices, such as exchanging payments for late-night food deliveries, arranging informal datingand other social gatherings, exchanging perspectives on different professors, and identifyingunusual debit card purchase patterns to assist with early fraud detection notification. Basedon cost estimates from Jack’s finance team and surveys of its new target customers…arrow_forward
- Strategy The table below contains the names of six companies. Required: For each company, categorize its strategy as being focused on customer intimacy, operational excellence, or product leadership, if you wish to improve your understanding of each company’s customer value proposition before completing the exercise, review its most recent annual report. To obtain electronic access to this information, perform an Internet search on each company’s name followed by the words “annual report.”arrow_forwardPURPOSE:The concept of creating shared value (CSV) was articulated by Michael Porter and Mark Kramer. They describe it as “Creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success.”34 This approach to business is especially relevant in today’s business world as the connection between businesses and their customers becomes stronger through social media attention and easy access to information on the internet. Many customers not only care about the product or service value but also want to know how the company operates and what it stands for. From the company’s perspective, it is also very important to understand that not all profit is equal. Porter and Kramer state, “Profits involving a social purpose represent a higher form of capitalism—one that will…arrow_forward1. Explain how the organizations culture would influence the design of a new Accounting Information system for a company. 2. An university has various schools and departments that offer various Degree and Diploma courses. The University has been offering courses through two modes of study that include the Full-Time classes and Evening Classes. The university management has been evaluating the possibility of introducing a new mode of study where the university will offer the students the option of selecting 100% online classes option. The University will deploy this 100% online classes option by using Zoom video conferencing software. Other software’s and platforms that the university will use for the 100% online classes mode like google classroom and other softwares. The university has invited you as an expert of accounting information systems to help in the design and implementation of a new revenue transaction cycle system that will be used for the new 100% online classes option mode…arrow_forward
- "As global competition increases, businesses are being pressured to reach higher levels of productivity to price their products and services competitively.' Explain how management accountants can play a role in helping management meet these challenges. Correct full answer from experts please help me #####################@$#####$$arrow_forwardplease explain and provide coarrow_forwardAdvanced Management Accountingarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengageManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub