complete term projects details attached
2. What are we expected to do for this term project?
You are expected to calculate the financial ratios of two firms (GM and Tesla), compare these numbers, and make investment and lending decisions between the two companies.
3. Do we have to present calculations for ratios that we calculate?
Yes. You are required to present all ratio calculations. For each ratio, and for each company, show your work in the following format:
Current ratio = $200,000 ÷ $40,000 = 5.00
Refer to “ACC 1100 Sample Term Project” in UM Learn for details.
4. Are there any format requirements for the ratio results?
The return ratios (ROA and ROE), gross profit margin, profit margin, and dividend yield should be presented as percentages (e. g., ROE = $257 ÷ $1,000 = 25.70%). All other ratios can be presented as raw numbers (like the current ratio example above). All ratio results should be rounded to two decimal places. Refer to “ACC 1100 Sample Term Project” in UM Learn for details.
5. Does each member of the group have to hand in a copy of the project?
Only one printed copy per group is required. Individual members do not need to submit separate copies.
6. Are Revenues in the financial statements the same as Sales? There are multiple items under the Revenue section, Which Revenue should we use in the calculations?
Revenues are stated as Sales in some cases. This project focuses on the merchandising operations. For both GM and Tesla, we consider sales from automotive only (“automotive sales” for Tesla, “automotive” for GM).
7. Where can we find Cost of Goods Sold?
We consider merchandising operations only.
For GM, you should use “Automotive and other cost of sales” under the “Costs and expenses” section from the income statements.
For Tesla, you should use “Automotive sales” under the “Cost of revenues” section from the statement of operations.
8. How do I calculate earnings per share for the term project?
The earnings per share (EPS) calculation is covered in the Intermediate Accounting course and can be quite complex. For the purposes of this project, please use “Basic earnings per common share” from GM’s income statement, and use “Net income per share of common stock attributable to common stockholders, Basic” from Tesla’s statement of operation.
9. I am looking for the market price at fiscal year end, but it looks like the fiscal year end was not a trading day. What market price should I use? Where do I obtain market price per share information?
Different analysts use market prices at different dates to calculate market-based ratios. For simplicity, our rule is that you should use the closing price on the date of the fiscal year end. Sometimes, however, the fiscal year end occurs on a weekend or statutory holiday and the markets are closed. In that case, take the closing price from the last trading date before the fiscal year end. Be careful to watch the fiscal year end dates of the companies, as they change each year.
GM’s shares are listed on the New York Stock Exchange (NYSE) under the code symbol GM.
Tesla’s shares are listed on the Nasdaq Stock Market (NASDAQ) under the code symbol TLSA.
You may find historical information of stock trading on TMX MONEY (http://www.tmxmoney.com) or Yahoo Finance. Go to Yahoo finance, type “GM” in search box (on tmxmoney.com, type “GM:US”) and click search. Click “Historical data” you may find historical prices of the stock. Specify the search period in the provided window and make sure the fiscal year end is included. For example, searching price history between Dec. 20, 2024 and Jan. 10, 2025 so that price per share information around Dec. 31, 2024 will be displayed. Use the “Close” price. On TMX, use “Unadjusted” close price.
10. Where can we get dividends per share information?
This varies by company. Some will present it in the financial statements, and some will present it elsewhere in the annual report. Each stock market or other on-line source seems to have dividends per share information for listed companies as well.
You may also find dividends declared on Yahoo finance. Go to Yahoo finance, type “GM” in search box (on tmxmoney.com, type “GM:US”) and click search. Click “Historical data”. Specify the search period in the provided window (from fiscal year end of 2023 to fiscal year end of 2024) and select “Dividends Only”. Sum up all the dividends declared during this period. Firms may not distribute any dividends in a certain year, so it happens when dividends are zero.
11. Where can we find Accounts Receivable?
GM: “Accounts and notes receivable, net of allowance” on the Balance Sheets.
Tesla: “Accounts receivable, net”.
12. Where can we find Interest Expense?
GM: “Automotive interest expense” on the Income Statements.
Tesla: “Interest Expense”.
Deductions on financial statements can be represented by parentheses, however, the dollar amounts of expenses in ratio calculations should be positive.
13. Where can we find inventories?
“Inventories” or “Inventory” on the Balance Sheet.
14. When calculating average shareholders’ equity for return on equity ratio, should we use “Total equity” or “Total shareholders’ equity”?
Total Shareholders’ equity (or Total Stockholders’ equity).
15. Should we use “Net income” or “Net income attributable to common stockholders”?
Net income.
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