Judgment Case 2: Impact of Judgment in Accounting for Stock Dividends

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Rochak · Accepted Answer

Answer a:
Net Income (In million
	Company
	2014
	2015
	2016
	Ford Motor Company - U.S.
	 $       1,231 
	 $       7,373 
	 $       4,596 
	Change
	 
	498.94%
	-37.66%
	General Motor Company - U.S.
	 $       3,949 
	 $       9,687 
	 $       9,427 
	Change
	 
	145.30%
	-2.68%
	Honda Motor Company - Japan
	 $       6,074 
	 $       4,241 
	 $       3,059 
	Change
	 
	-30.18%
	-27.87%
	Daimler AG - Germany
	 $       8,940 
	 $       9,157 
	 $       8,975 
	Change
	 
	2.43%
	-1.99%
Comment: The change in net income for the two U.S. companies, i.e., Ford Motor Company and General Motor Company are similar, where their net income grew from 2014 to 2015 and later on fell in the year 2016 this could be due to many reasons. Similarly, the net income of Honda Motor Company has been falling across the 3 years; it fell 30.18% and 27.87% in 2015 and 2016 respectively. Daimler AG saw a slight increase in net income in 2015 but saw a similar fall in 2016. 
Book Values (In millions
	Company
	2014
	2015
	2016
	Ford Motor Company - U.S.
	 $     24,438 
	 $     28,642 
	 $     29,170 
	Change
	 
	17.20%
	1.84%
	General Motor Company - U.S.

Judgment Case 2: Impact of Judgment in Accounting for Stock Dividends

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