ANNUAL INCOME STATEMENT COMPARISON

Annual Income Statement Comparison

Annual Income Statement Comparison

Annual Income Statement Comparison

Company name

General Motors (GM)

Ford Motor Company

What does the company do?

Manufactures motor-vehicles and aerospace technology equipment

Manufactures motor-vehicles

Total Revenue

US$149 billion

$146.3 billion

Total Operating Expenses

US$94.7 B

US$81.7 B

Net income

US$ 111.7 B

US$ 106.23 B

PART II: RESULTS OF YOUR FINDINGS

Which company would you invest in and why?

I would invest in Ford because of the lower operating expenses.

How is the financial manager responsible, in part, for the numbers that appear on the income statement? Be specific using examples from the text and lecture notes.

Ans. The primary goal of every corporation is to maximize shareholder ...