group activity analyzing general motors statement of cash flows the following inform 1571777

Group Activity: Analyzing General Motors Statement of Cash Flows.The following information is from the consolidated statement of cash flows for General Motors (GM) for the year ended December 31, 2005 (in millions).

Required:

An investment advisor recently reviewed GM’s statement of cash flows and balance sheet and stated: “GM is doing great! They are sitting on cash of more than $30,000,000,000. There is no cash flow problem with this company!” In groups of two to four students, decide whether you agree with this statement. Support your conclusion with an analysis of GM’s cash flows.