Question
Analyze the Ford Motor Company statement of cash flows to determine the financial strengths and weaknesses of a company. Using Ford's 10K from 2022, review
Analyze the Ford Motor Company statement of cash flows to determine the financial strengths and weaknesses of a company.
Using Ford's 10K from 2022, review the Management Discussion and Analysis (MD&A) section of the annual report and the managements discussion regarding the statement of cash flows or any discussion on the operating, investing, or financing activities of the company. In addition, refer to the statement of cash flows financial statement.
Help answer the following questions and include screenshots from the statement of cash flows as needed to illustrate key findings and information.
- Discuss the company's major sources of cash in each of the three sections of the statement of cash flows. Provide at least two major sources of cash for each section.
- Discuss the company's major uses of cash in each of the three sections of the statement of cash flows. Provide at least two major sources of cash for each section.
- Discuss the major differences between the net income and the cash provided or used by operating activities, and explain the cause of the major difference between the two values. Note that you may need to reconcile the differences between net income reported and the subtotal of cash provided or used by "operating" activities. What were the reconciling items, how were these accounts adjusted, and why do we not just report "net income" without adjustments?
- Summarize the financial strengths of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion as to whether or not you anticipate the company will experience continued success and explain your answer. Only information from the statement of cash flow should be referenced. Note that this analysis will be more than just the amounts of either the cash provided or used. You may need to review the notes in the MD&A for additional information.
- Summarize the financial weaknesses of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion as to whether or not you anticipate the company will experience continued challenges in this area and explain your answer. Only information from the statement of cash flows should be referenced. Note that this analysis will be more than just the amounts of either the cash provided or used. You may need to review the notes in the MD&A for additional information.
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