A Ford Company has the following information from its 2018-2015
Required: Analyze and explain each horizontal analysis ( balance sheet and income statement) give explanation in each data.
Horizontal Analysis Ford Company Income statement Year ended December 31, Revenue Cost of Goods Sold Gross profit SG&A Expenses Operating Expenses Operating Income Total Non-Operating Income/Expense Pre-Tax Income Income Taxes Income After Taxes Income from Continuous Operations Net Income EBITDA EBIT Basic Shares Outstanding Shares Outstanding Basic EPS EPS - Earning Per Share 2016 $ 151,800 126,195 25,605 19,819 146,014 5,786 998 6,784 2,184 4,600 4,600 4,589 14,503 5,786 3,973 3,999 1.16 $ 1.15 2015 $ 149,558 124,446 25,112 10,763 135,209 14,349 (4,097) 10,252 2,881 7,371 7,371 7,373 22,315 14,349 3,969 4,002 1.86 $ 1.84 Increase (Decrease) Amount % $ 2,242 1.50 1,749 1.41 493 1.96 9,056 84.14 10,805 7.99 (8,563) (59.68) 5,095 (124.36) (3,468) (33.83) (697) (24.19) 2,771 (37.59) 869 23.29 (2,784) (37.76) (7,812) (35.01) (8,563) (59.68) 4 0.10 (3) (0.08) (0.7) (37.63) $ (0.69) (37.50) Ford Company Income statement Year ended December 31, Revenue Cost of Goods Sold Gross profit SG&A Expenses Operating Expenses Operating Income Total Non-Operating Income/Expense Pre-Tax Income Income Taxes Income After Taxes Income from Continuous Operations Net Income EBITDA EBIT Basic Shares Outstanding Shares Outstanding Basic EPS EPS - Earning Per Share 2018 $ 160,338 136,269 24,069 20,866 157,135 3,203 1,142 4,345 650 3,695 3,695 3,677 11,616 3,203 3,974 3,998 0.93 $ 0.92 2017 $ 156,776 131,321 25,455 20,574 151,895 4,881 3,278 8,159 402 7,757 7,757 7,731 13,453 4,881 3,975 3,998 1.94 $ 1.93 Increase (Decrease) Amount % $ (3562) (2.27) (4948) (3.77) 1386 (5.45) (292) (1.42) (5240) (3.45) 1678 34.38 2136 65.16 3814 46.75 (248) (61.69) 4062 52.37 4062 52.37 4054 52.44 1837 13.66 1678 34.38 1 0.03 0 0 1.01 52.06 $ 1.01 52.33 Horizontal Analysis Ford Company Balance Sheet Year ended December 31, Cash on Hand Receivables Inventory Other Current Assets Total Current Assets Properly, Plant, And Equipment Long-Term Investment Other Long-Term Assets Total Long-Term Assets Total Assets Total Current Liabilities Long Term Debt Other Non-Current Liabilities Total Long-Term Liabilities Total Liabilities Common Stock Net Retained Earnings (Accumulated Deficit) Comprehensive Income Share Holder Equity Total Liabilities and Share Holders Equity 2016 $ 38,827 11,102 8,898 3,368 108,461 32,072 32,133 5,656 129,490 237,951 90,281 93,301 24,395 118,483 203,764 41 15,634 (7,013) 29,187 $ 237,951 2015 $ 35,176 11,042 8,319 2,913 102,587 30,163 30,317 4,795 122,338 224,925 82,336 89,879 23,457 113,932 196,268 41 14,414 (6,257) 286,57 $ 224,925 Increase (Decrease) Amount % $3,651 10.37924 60 0.54338 579 6.959971 455 15.61964 5,874 5.725872 1,909 6.328946 1,816 5.990039 861 17.9562 7,152 5.846099 13,026 5.791264 7,945 9.649485 3,422 3.807341 938 3.998806 4,551 3.994488 7,496 3.819268 0 0 1,220 8.463993 (756) 12.08247 530 1.849461 $13,026 5.791264 Ford Company Balance Sheet Year ended December 31, Cash on Hand Accounts Receivable Inventory Other Current Assets Total Current Assets Properly, Plant, And Equipment Long-Term Investment Other Long-Term Assets Total Long-Term Assets Total Assets Total Current Liabilities Long Term Debt Other Non-Current Liabilities Total Long-Term Liabilities Total Liabilities Common Stock Net Retained Earnings (Accumulated Deficit) Comprehensive Income Share Holder Equity Total Liabilities and Share Holders Equity 2018 $ 33,951 11,195 11,220 3,930 114,649 36,178 31,828 7,929 141,891 256,540 95,569 100,720 23,588 125,005 220,574 41 22,668 (97,366) 35,966 $ 256,540 2017 $38,927 10,599 11,176 3,889 116,801 35,327 31,320 8,104 141,695 258,496 94,600 102,666 24,711 128,290 222,890 41 21,906 (96,959) 35,606 $ 258,496 Increase (Decrease) Amount % $(4,976) (12.78) 596 5.62 44 0.39 41 1.05 (2,152) (1.84) 851 2.41 508 1.62 9175) (2.16) 196 0.14 (1,956) (0.76) 969 1.02 (1,946) (1.90) (1,123) (4.55) (3,285) (2.56) (2,316) (1.04) 0 0 762 3.48 (407) 5.85 360 1.01 $(1,956) (0.76)
