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

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.
     $ ...