Ford Motor Company is the world”s second-largest producer of cars and trucks and ranks among the largest providers of financial services in the United States. The following information pertains to Ford: (in millions)
|
(in millions) |
1998 |
1999 |
2000 |
|
Sales |
$118.017 |
$135,073 |
$141,230 |
|
Cost of goods sold |
1,04,616 |
1,18,985 |
1,26,120 |
|
Gross margin |
$ 13,401 |
$ 16,088 |
$ 15,110 |
|
Operating expenses |
7,834 |
8,874 |
9,884 |
|
Net operating income |
$ 5,567 |
$ 7,214 |
$ 5,226 |
a. Prepare a statement showing the trend percentages for each item, using 1998 as the base year.
b. Comment on the trends noted in part (a).