2013 Annual Report for the Ford Motor Company, Accounting Assignment homework Help

May 25th, 2016
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Option #2: Financial Report Analysis— Ford Motor Company

View the 2013 Annual Report for the Ford Motor Company, a Fortune 50 company, linked here as well as on the Course Information page. Using this report, answer the following questions:

  1. Does the company use a multiple-step or a single-step format on its income statement? Explain.

  2. What was the net income for 2013? What was the basic net income (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 administrative expenses in 2013? Of this amount, what was the amount for stock-based compensation expense?

  7. What amount of dividends on common stock was paid per share and 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 operating activities in 2013?  In 2012?

  10. How much was the net cash provided (or used) by investing activities in 2013? In 2012?

  11. How much was the cash provided by the issuances of debt in 2013? In 2012?

  12. What were the cash and cash equivalents at the end of 2013 and 2012? What does the company classify as cash equivalents?

  13. What were the total accounts receivable (net) at the end of 2013? At the end of 2012?

  14. Assuming that all revenues were net credit sales, and that the total accounts receivable (net) at the end of 2011 were $8,281 million, 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 of the ratio and the difference between the two years?

  15. Which inventory method(s) does the company use? Explain why you think the company selected this method(s).

  16. Compute the inventory turnover ratio for 2013 and 2012 using the ending inventory instead of the average inventory. What is your evaluation of the difference?

  17. What was the total amount of inventories on December 31, 2013 and 2012? What were the principal categories of inventory on these dates?

  18. What was the amount of the current assets on December 31, 2013?

  19. What was the amount in the allowance for doubtful accounts on December 31, 2013?

  20. What is the par value of the company’s common stock? How many shares had been issued at the end of 2013?

  21. What was the long-term debt on December 31, 2013? Of this total, which was the highest long-debt item and how much was it?

  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 expenses on December 31, 2013? How much was for accrued interest expenses at December 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 company on December 31, 2013?

  28. What are the company’s operating segments?

  29. What are the company’s 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 the company reported at the end of 2013, and how did the company capitalize and amortize the different intangible assets?

  32. Why does the company amortize some of its intangible assets but not others?

  33. Do you think that the company has additional “intangibles” that are not recorded on the balance sheet? Why? How would this issue affect your understanding of the company’s financial performance?

  34. What were the total debt and debt components at the end of 2013?

  35. What are the company’s commitments and contingencies?

  36. What are the terms of the company’s credit agreement?

Complete your assignment in a Microsoft Word document and clearly identify each numbered item to which you are responding. Part of your grade will be based on the organization of your project. Show all supporting calculations for your responses, as applicable. Specifically, questions 3, 4, 13, 14, 16, 17, 18, and 34 require calculations. In order to clearly show quantitative responses with calculations, insert a table(s) in Word so that your completed assignment is well organized and composed of only one document for submission

Tutor Answer

(Top Tutor) cruz9
School: University of Maryland

Surname 1
Ford Company

Ford uses a single-step format in its income statement. This means that the preparation
of the income statement is done in one step by simply subtracting expenses from the


Net income for 2013=$ 7,148 (millions)
Basic net income per common share for 2013= $1.82


Gross income 2013
Gross income=total revenue-cost of the goods that are sold
Total Revenue=Revenues(automotive)+ Revenue (financial services)
Total Revenue=139,369+7,548
Total Revenue=$ 146,917(millions)
Cost=cost(automotive)+cost(financial services)
Cost=141,478 (millions)
Gross income=146,917-141478
Gross income=$ 5439 millions
Gross income 2012
Total revenue=126567+6992
Total Revenue=133559

Surname 2
Gross income=133559-127678
Gross income=$ 5881 (millions)

Interest expense incurred in 2013
Interest expense incurred in 2013=Financial services interest expenses +Automotive
interest expense
Interest expense incurred in 2013= 2,860 + 829
Interest expense incurred in 2013= $ 3,689 (millions)
Interest expense incurred in 2012
Interest expense incurred in 2012= Financial services interest expenses +Automotive
interest expense
Interest expense incurred in 2012= 3,115 + 713
Interest expense incurred in 2012=$ 3,828 (millions)


Income before taxes 2013=$7,001 (millions)
Income before taxes 2012= $ 7720 (millions)



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