Chapter 4-table 2: Do financial statements help in Financial decisions and corporate valuation

Table 2: Distribution of the company Total Assets by

Period (In Millions of U.S. Dollars)

Bank	2004	2005	2006	2007	2008
1. Compass Group PLC	10905	11084	9394	8293	8923
2. Toronto Dominion Bank	250128	293702	315981	339472	452937
3. Harris Corp	2226	2457	3142	4406	4559
4. Morgan Stanley	747334	898523	1121192	1045409	658812
5. Boeing Co	56224	59996	51794	58986	53801

Table 2 presents the data on the Total assets of the selected companies by period. It reveals that Compass Group PLC has increasing total assets from 2004 to 2006, but, decreased in 2007. The company recovered in 2008 as evidenced by the values US$10905, US$11084, US$9394, US$8293, and US$8923 respectively. This means that the owners reinvested into the business.

The total assets of Toronto Dominion Bank were increasing as evidenced by the values US$250128, US$293702, US$315981, US$339472, and US$452937 respectively. This means that owners of Toronto Dominion Bank consistently reinvested into the business.

Harris Corp net income were increasing as evidenced by the values US$2226, US$2457, US$3142, US$4406, and US$4559 respectively. This means that Harris Corp owners reinvested into the business.

The total assets of Morgan Stanley increased from 2004 to 2005, but, decreased in 2006 to 2008 as evidenced by the value of US$747334, US$898523, US$1121192, US$1045409, and US$658812 respectively. This means that Morgan Stanley paid their debt in 2008.

Boeing Co total assets decreased in 2008 as evidenced by the values US$56224, US$59996, US$51794, US$58986, and US$53801 respectively. This means that Boeing Co declared cash dividends on stocks which are usually distributed at a later part.

Generally, the figures on the table reveal that Compass Group PLC, Toronto Dominion Bank, and Harris Corp owners invested into new business. Morgan Stanley paid their debt, and Boeing Co declared cash dividends on stocks, with dividends distributed at a later part. This implies that the three selected banks financial managers decided on cash flow out within the period, making investment highly risky.