Financial Report Analysisâ Ford MotorCompany
View the 2013 Annual Report for the Ford Motor Company, aFortune 50 company, linked here as well as on the CourseInformation page. Using this report, answer the followingquestions:
1. Does the company use a multiple-step or a single-step formaton its income statement? Explain.
2. What was the net income for 2013? What was the basic netincome (earnings) per common share for 2013?
3. What was the gross profit for 2013? For 2012?
4. How much interest expense was incurred in 2013? In 2012?
5. What was the amount of income before income taxes for 2013?For 2012?
6. What was the amount of selling, general, and administrativeexpenses in 2013? Of this amount, what was the amount forstock-based compensation expense?
7. What amount of dividends on common stock was paid per shareand in total in 2013?
8. What were the total revenues and income before income taxes,respectively, for the fourth quarter of 2013?
9. How much was the net cash provided (or used) by operatingactivities in 2013? In 2012?
10. How much was the net cash provided (or used) by investingactivities in 2013? In 2012?
11. How much was the cash provided by the issuances of debt in2013? In 2012?
12. What were the cash and cash equivalents at the end of 2013and 2012? What does the company classify as cash equivalents?
13. What were the total accounts receivable (net) at the end of2013? At the end of 2012?
14. Assuming that all revenues were net credit sales, and thatthe total accounts receivable (net) at the end of 2011 were $8,281million, compute the receivables turnover for 2013 and 2012. (Hint:Assume the total of accounts receivable is in trade receivables).Round your answer to two decimal places. What is your evaluation ofthe ratio and the difference between the two years?
15. Which inventory method(s) does the company use? Explain whyyou think the company selected this method(s).
16. Compute the inventory turnover ratio for 2013 and 2012 usingthe ending inventory instead of the average inventory. What is yourevaluation of the difference?
17. What was the total amount of inventories on December 31,2013 and 2012? What were the principal categories of inventory onthese dates?
18. What was the amount of the current assets on December 31,2013?
19. What was the amount in the allowance for doubtful accountson December 31, 2013?
20. What is the par value of the companyâs common stock? Howmany shares had been issued at the end of 2013?
21. What was the long-term debt on December 31, 2013? Of thistotal, which was the highest long-debt item and how much wasit?
22. What was the accumulated depreciation on December 31, 2013?What method does the company use to depreciate its property, plant,and equipment?
23. What was the amount of accounts payable and accrued expenseson December 31, 2013? How much was for accrued interest expenses atDecember 31, 2013?
24. What were the reinvested (retained) earnings on December 31,2013?
25. What were the total assets on December 31, 2013?
26. What were the current liabilities on December 31, 2013?
27. What was the cost of the treasury stock held by the companyon December 31, 2013?
28. What are the companyâs operating segments?
29. What are the companyâs segment products and services?
30. What is the estimated useful life of the property, plant,and equipment; land improvement; and buildings?
31. What was the total amount of intangible assets that thecompany reported at the end of 2013, and how did the companycapitalize and amortize the different intangible assets?
32. Why does the company amortize some of its intangible assetsbut not others?
33. Do you think that the company has additional âintangiblesâthat are not recorded on the balance sheet? Why? How would thisissue affect your understanding of the companyâs financialperformance?
34. What were the total debt and debt components at the end of2013?
35. What are the companyâs commitments and contingencies?
36. What are the terms of the companyâs credit agreement?
Complete your assignment in a Microsoft Word document andclearly identify each numbered item to which you are responding.Part of your grade will be based on the organization of yourproject. Show all supporting calculations for your responses, asapplicable. Specifically, questions 3, 4, 13, 14, 16, 17, 18, and34 require calculations. In order to clearly show quantitativeresponses with calculations, insert a table(s) in Word so that yourcompleted assignment is well organized and composed of only onedocument for submission.
Financial Report Analysisâ Ford MotorCompany
View the 2013 Annual Report for the Ford Motor Company, aFortune 50 company, linked here as well as on the CourseInformation page. Using this report, answer the followingquestions:
1. Does the company use a multiple-step or a single-step formaton its income statement? Explain.
2. What was the net income for 2013? What was the basic netincome (earnings) per common share for 2013?
3. What was the gross profit for 2013? For 2012?
4. How much interest expense was incurred in 2013? In 2012?
5. What was the amount of income before income taxes for 2013?For 2012?
6. What was the amount of selling, general, and administrativeexpenses in 2013? Of this amount, what was the amount forstock-based compensation expense?
7. What amount of dividends on common stock was paid per shareand in total in 2013?
8. What were the total revenues and income before income taxes,respectively, for the fourth quarter of 2013?
9. How much was the net cash provided (or used) by operatingactivities in 2013? In 2012?
10. How much was the net cash provided (or used) by investingactivities in 2013? In 2012?
11. How much was the cash provided by the issuances of debt in2013? In 2012?
12. What were the cash and cash equivalents at the end of 2013and 2012? What does the company classify as cash equivalents?
13. What were the total accounts receivable (net) at the end of2013? At the end of 2012?
14. Assuming that all revenues were net credit sales, and thatthe total accounts receivable (net) at the end of 2011 were $8,281million, compute the receivables turnover for 2013 and 2012. (Hint:Assume the total of accounts receivable is in trade receivables).Round your answer to two decimal places. What is your evaluation ofthe ratio and the difference between the two years?
15. Which inventory method(s) does the company use? Explain whyyou think the company selected this method(s).
16. Compute the inventory turnover ratio for 2013 and 2012 usingthe ending inventory instead of the average inventory. What is yourevaluation of the difference?
17. What was the total amount of inventories on December 31,2013 and 2012? What were the principal categories of inventory onthese dates?
18. What was the amount of the current assets on December 31,2013?
19. What was the amount in the allowance for doubtful accountson December 31, 2013?
20. What is the par value of the companyâs common stock? Howmany shares had been issued at the end of 2013?
21. What was the long-term debt on December 31, 2013? Of thistotal, which was the highest long-debt item and how much wasit?
22. What was the accumulated depreciation on December 31, 2013?What method does the company use to depreciate its property, plant,and equipment?
23. What was the amount of accounts payable and accrued expenseson December 31, 2013? How much was for accrued interest expenses atDecember 31, 2013?
24. What were the reinvested (retained) earnings on December 31,2013?
25. What were the total assets on December 31, 2013?
26. What were the current liabilities on December 31, 2013?
27. What was the cost of the treasury stock held by the companyon December 31, 2013?
28. What are the companyâs operating segments?
29. What are the companyâs segment products and services?
30. What is the estimated useful life of the property, plant,and equipment; land improvement; and buildings?
31. What was the total amount of intangible assets that thecompany reported at the end of 2013, and how did the companycapitalize and amortize the different intangible assets?
32. Why does the company amortize some of its intangible assetsbut not others?
33. Do you think that the company has additional âintangiblesâthat are not recorded on the balance sheet? Why? How would thisissue affect your understanding of the companyâs financialperformance?
34. What were the total debt and debt components at the end of2013?
35. What are the companyâs commitments and contingencies?
36. What are the terms of the companyâs credit agreement?
Complete your assignment in a Microsoft Word document andclearly identify each numbered item to which you are responding.Part of your grade will be based on the organization of yourproject. Show all supporting calculations for your responses, asapplicable. Specifically, questions 3, 4, 13, 14, 16, 17, 18, and34 require calculations. In order to clearly show quantitativeresponses with calculations, insert a table(s) in Word so that yourcompleted assignment is well organized and composed of only onedocument for submission.
