12 question assignment on Accounting. Assignment & Statements are attached to complete the task.

Question #1: Use attachement GM_balance_sheet_2017.pdf to answer the following questions:

Please review the above Balance Sheet for General Motors Company and complete the table below by locating the 2017 and 2016 Total Assets, Liabilities, and Equity for the General Motors Company?  Then, look at the change in accounts from 2016 to 2017 and select the option that reflects if you think the trend is upward or downward.

2017 2016 Trending which way?

Total Assets

$ $  

Total Liabilities

$ $   

Total Equity

$ $  

Question #2 : Use attachment Ford_balance_sheet_2017.pdf to answer the following questions:

Please review the above Balance Sheet for Ford Motor Company and complete the table below by locating the 2017 and 2016 Total Assets, Liabilities, and Equity for the Ford Motor Company?  Then, look at the change in accounts from 2016 to 2017 and select the option that reflects if you think the trend in each account is upward or downward.

2017 2016 Trending which way?

Total Assets

$ $  

Total Liabilities

$ $   

Total Equity

$ $  

Question #3: Use attachments GM_balance_sheet_2017.pdf & Ford_Balance_sheet_2017.pdf to answer the following questions:

Which company appears to be larger based on the 12/31/2017 total assets (things they own)?      

How many more assets do they own (compare the total assets of the 2 companies and take the difference)? $  

Which company has the most debt 12/31/2017 (ie...total liabilities or things they owe)?      

How many more liabilities do they owe (compare the total liabilities of the 2 companies and take the difference)? $ 

Which company has the largest amount of total equity on 12/31/2017 (the difference between what they own and owe)?      

How much more equity do they own (compare the total assets of the 2 companies and take the difference)? $ 

Question #4: Use attachment GM_Income_Statement_2017.pdf to answer the following questions:

Please review the above GM_Income_Statement_2017.pdf [+] and complete the table below by locating the 2017, 2016, and 2015 Total Revenues, Costs and Expenses, and Net Income for the General Motors Company?  Then, look at the change in accounts from 2015 to 2017 and select the option that reflects if you think the trend is upward or downward.

Question #5: Use attachment Ford_IS_2017.pdf to answer the following questions:

Please review the above Ford_IS_2017.pdf [+] and complete the table below by locating the 2017, 2016 and 2015 Total Revenues, Costs and Expenses, and Net Income for Ford Motor Company?  Then, look at the change in accounts from 2015 to 2017 and select the option that reflects if you think the trend is upward or downward.

Question #6: Use attachment GM_balance_sheet_2017.pdf & Ford_Balance_sheet_2017.pdf to answer the following questions:

Please review the above Balance Sheets for General Motors Company and Ford complete the table below by calculating the following ratios for each company using the 12/31/17 numbers?  Then, you are asked to determine which company has the better current ratio, debt ratio, and return on total assets ratio.

Please round your answers to 2 decimal places. Remember, the debt ratio and return on assets ratios are percentages.  So, if your answer is .0654, then it needs to be entered as 6.54, which is 6.54%.  

 Current Ratio

You'll need to calculate this by taking the 2017 Total Current Assets and dividing it by the Total Current Liabilities.  Please round your answer to 2 decimal places.  

For example, Ford's Current Ratio at the end of 2015 was 2.12.  This tells you that they have $2.12 in current assets to every $1 in current liabilities.  We usually prefer a ratio of 1.5 or better to 1.  This is a measure of the company's ability to pay their short-term debt as they come due.

Debt Ratio

You'll need to calculate this by taking the 2017 Total Liabilities and dividing it by their 2017 Total Assets.  You will then have to move the decimal place to the right 2 places to get a percentage.  Please round your answer to 2 decimal places.  

Which company has the higher Debt Ratio?  This tells us how much of a company's assets are financed by debt.  This indicates risk.  The higher the debt ratio, the higher the risk.  

Return on Assets

You'll need to calculate this by taking the 2017 Net Income and dividing it by their Average Total Assets.  Average Total Assets will be calculated by taking the 2017 Ending Total Asset Balance and adding it to the 2016 Ending Total Asset Balance and divide the resulting number by 2.  You will then have to move the decimal place to the right 2 places to get a percentage.  Please round your answer to 2 decimal places.  

This tells us how a good a company is at using the assets they have invested in the company to generate net income.  A higher number indicates the company is doing a better job using the assets they have to generate net income.

Remember, net income is found in the Income Statement, not the Balance Sheet. Ford_IS_2017.pdf [+] & GM_Income_Statement_2017.pdf [+]

Question #7: Go to Morningstar.com. At the top of the page, in the upper left-hand side of the page where you see the magnifying glass where it reads Search Quotes and Site, start typing "Home Depot or HD" in the box.   As you start to type the company name a list of potential selections will pop up.  Keep typing until you see "Home Depot", "XNYS" and then click on it (it should be highlighted in blue).  Be careful, if you enter the entire name and hit enter, you will get an error.  Once you select the company name or symbol (HD for Home Depot), scroll down about halfway down the page until you locate a tab called, “Financials” in the middle of the other tabs, then click on "Financials" button, and scroll down until you see the statement that you would like to view on the far left-hand side of the page, ie.. Income Statement or Balance Sheet.  The title of the statement is in bold, gray letters and shown just above the chart.  Click on the "Income Statement >" button or the "Balance Sheet >" button to select the statement that you would like to view.  Then, you can use the data provided to answer the following questions.  For a video explanation, please see https://www.youtube.com/watch?v=rqHu7MLAbfY&hd=1 [+]  .

Then, answer the following questions related to Home Depot using trend analysis.   

Let's begin by viewing the Income Statement of the Home Depot.  

Please complete the following chart (when answering the problems, please enter the numbers as shown on the financial statement.  ie... 2018 Revenue is 100.90, so you will enter "100.90", 2018 Total Cost of Revenue is -66.55, hence enter "-66.55".  Please note those numbers are in billions of dollars).

Question #8: Go to Morningstar.com. At the top of the page, in the upper left-hand side of the page where you see the magnifying glass where it reads Search Quotes and Site, start typing "Home Depot or HD" in the box.   As you start to type the company name a list of potential selections will pop up.  Keep typing until you see "Home Depot", "XNYS" and then click on it (it should be highlighted in blue).  Be careful, if you enter the entire name and hit enter, you will get an error.  Once you select the company name or symbol (HD for Home Depot), scroll down about halfway down the page until you locate a tab called, “Key Ratios” in the middle of the other tabs, then click on "Full Key Ratios Data" button, and scroll down until you see the ratio that you are looking for.  Then, you can use the data provided to answer the following questions.  

Click on this link for a video explanation, https://www.youtube.com/watch?v=p6qCbIu8B9U&hd=1 [+]  .  Please keep in mind that there are 5 tabs under the Key Ratios tab toward the bottom that contain different information you'll need.

Then, answer the following questions related to Home Depot.  Once you have entered the information for the Home Depot, you'll have to repeat the above steps to answer the questions for "Lowe's Companies" as well.  Then, answer the remaining question comparing the two companies.  

 We will focus our attention on the Key Ratios for the year ended January 2019.  
 [+]

Question #9 Go to Morningstar.com. At the top of the page, in the upper left-hand side of the page where you see the magnifying glass where it reads Search Quotes and Site, start typing "Home Depot or HD" in the box.   As you start to type the company name a list of potential selections will pop up.  Keep typing until you see "Home Depot", "XNYS" and then click on it (it should be highlighted in blue).  Be careful, if you enter the entire name and hit enter, you will get an error.  Once you select the company name or symbol (HD for Home Depot), scroll down about halfway down the page until you locate a tab called, “Key Ratios” in the middle of the other tabs, then click on "Full Key Ratios Data" button, and scroll down until you see the ratio that you are looking for.  Then, you can use the data provided to answer the following questions.  

Click on this link for a video explanation, https://www.youtube.com/watch?v=pteN4Cyvr2Y&hd=1 [+]  .  Please keep in mind that there are 5 tabs under the Key Ratios tab toward the bottom that contain different information you'll need.

Then, answer the following questions related to Home Depot.  Once you have entered the information for the Home Depot, you'll have to repeat the above steps to answer the questions for "Lowe's Companies" as well.  Then, answer the remaining question comparing the two companies.  

  We will focus our attention on the Key Ratios for the year ended January 2019.  
 [+]

Question # 10: Go to Morningstar.com. At the top of the page, in the upper left-hand side of the page where you see the magnifying glass where it reads Search Quotes and Site, start typing "Home Depot or HD" in the box.   As you start to type the company name a list of potential selections will pop up.  Keep typing until you see "Home Depot", "XNYS" and then click on it (it should be highlighted in blue).  Be careful, if you enter the entire name and hit enter, you will get an error.  Once you select the company name or symbol (HD for Home Depot), scroll down about halfway down the page until you locate a tab called, “Key Ratios” in the middle of the other tabs, then click on "Full Key Ratios Data" button, and scroll down until you see the ratio that you are looking for.  Then, you can use the data provided to answer the following questions.  

Click on this link for a video explanation, https://www.youtube.com/watch?v=J3aQ4B2oc_w&hd=1 .  Please keep in mind that there are 5 tabs under the Key Ratios tab toward the bottom that contain different information you'll need.

Then, answer the following questions related to Home Depot.  Once you have entered the information for the Home Depot, you'll have to repeat the above steps to answer the questions for "Lowe's Companies" as well.  Then, answer the remaining question comparing the two companies.  

 We will focus our attention on the Key Ratios for the year ended January 2019.

Question #11:

Go to Morningstar.com. At the top of the page, in the upper left-hand side of the page where you see the magnifying glass where it reads Search Quotes and Site, start typing "Home Depot or HD" in the box.   As you start to type the company name a list of potential selections will pop up.  Keep typing until you see "Home Depot", "XNYS" and then click on it (it should be highlighted in blue).  Be careful, if you enter the entire name and hit enter, you will get an error.  Once you select the company name or symbol (HD for Home Depot), scroll down about halfway down the page until you locate a tab called, “Key Ratios” in the middle of the other tabs, then click on "Full Key Ratios Data" button, and scroll down until you see the ratio that you are looking for.  Then, you can use the data provided to answer the following questions.  

Click on this link for a video explanation, https://www.youtube.com/watch?v=q33Ih1ja1jY&hd=1 [+]  .  Please keep in mind that there are 5 tabs under the Key Ratios tab toward the bottom that contain different information you'll need.

Then, answer the following questions related to Home Depot.  Once you have entered the information for the Home Depot, you'll have to repeat the above steps to answer the questions for "Lowe's Companies" as well.  Then, answer the remaining question comparing the two companies.  

 We will focus our attention on the Key Ratios for the year ended January 2019.

  [+]

Go to Morningstar.com. At the top of the page, in the upper left-hand side of the page where you see the magnifying glass where it reads Search Quotes and Site, start typing "Home Depot or HD" in the box.   As you start to type the company name a list of potential selections will pop up.  Keep typing until you see "Home Depot", "XNYS" and then click on it (it should be highlighted in blue).  Be careful, if you enter the entire name and hit enter, you will get an error.  Once you select the company name or symbol (HD for Home Depot), scroll down about halfway down the page until you locate a tab called, “Key Ratios” in the middle of the other tabs, then click on "Full Key Ratios Data" button, and scroll down until you see the ratio that you are looking for.  Then, you can use the data provided to answer the following questions.  

Click on this link for a video explanation, https://www.youtube.com/watch?v=BcYRerQUCFA&hd=1 [+]   .  Please keep in mind that there are 5 tabs under the Key Ratios tab toward the bottom that contain different information you'll need.

Then, answer the following questions related to Home Depot.  Once you have entered the information for the Home Depot, you'll have to repeat the above steps to answer the questions for "Lowe's Companies" as well.  Then, answer the remaining question comparing the two companies.  

 We will focus our attention on the Key Ratios for the year ended January 2019.
 [+]

Now, for the most important question:

Taking into account your review of the Liquidity, Efficiency, Solvency, Profitability, and Market Analysis Ratios for Home Depot and Lowes, which company do you think would be a better investment?