Assume General Motors announced a quarterly profit of $119 million for 4th quarter 2019. Below is a portion of its balance sheet. Conduct a horizontal analysis of the following line items. (Negative answers should be indicated by a minus sign. Round the "percent" answers to the nearest hundredth percent.) 2019 (dollars in millions) 2018 (dollars in millions) Difference % CHG 15,980 $ 15,499 16,148 Cash and cash equivalents $ Marketable securities 9,222 Inventories 13,642 14,324 Goodwill 1,278 Total liabilities and equity 103,249 $ 144,603
Assume General Motors announced a quarterly profit of $119 million for 4th quarter 2019. Below is a portion of its balance sheet. Conduct a horizontal analysis of the following line items. (Negative answers should be indicated by a minus sign. Round the "percent" answers to the nearest hundredth percent.) 2019 (dollars in millions) 2018 (dollars in millions) Difference % CHG 15,980 $ 15,499 16,148 Cash and cash equivalents $ Marketable securities 9,222 Inventories 13,642 14,324 Goodwill 1,278 Total liabilities and equity 103,249 $ 144,603
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Assume General Motors announced a quarterly profit of $119 million for 4th quarter 2019. Below is a portion of its balance sheet.
Conduct a horizontal analysis of the following line items. (Negative answers should be indicated by a minus sign. Round the
"percent" answers to the nearest hundredth percent.)
2019 (dollars in millions)
2018 (dollars in millions)
Difference
% CHG
Cash and cash equivalents
$
15,980 $
15,499
Marketable securities
9,222
16,148
Inventories
13,642
14,324
Goodwill
1,278
Total liabilities and equity
$
103,249 $
144,603](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4b6db93-ec39-4173-b6f0-4260332b7f4f%2Fb725e1fb-67ad-40a4-80f9-8314b8af720b%2F181hagb_processed.png&w=3840&q=75)
Transcribed Image Text:Assume General Motors announced a quarterly profit of $119 million for 4th quarter 2019. Below is a portion of its balance sheet.
Conduct a horizontal analysis of the following line items. (Negative answers should be indicated by a minus sign. Round the
"percent" answers to the nearest hundredth percent.)
2019 (dollars in millions)
2018 (dollars in millions)
Difference
% CHG
Cash and cash equivalents
$
15,980 $
15,499
Marketable securities
9,222
16,148
Inventories
13,642
14,324
Goodwill
1,278
Total liabilities and equity
$
103,249 $
144,603
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1 Calculation of Difference and % Change
Difference = Balance of 2019 - Balance of 2018
% Change = (Difference / Balance of 2018)*100
Note :
To calculate % change balance of 2018 is taken as base.
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