Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below are the calendar year 2019 Annual Reports for Daimler (Mercedes Benz) (MB), prepared under IFRS, and Ford Motor Company (Ford), prepared under the US

Below are the calendar year 2019 Annual Reports for Daimler (Mercedes Benz) (MB), prepared under IFRS, and Ford Motor Company (Ford), prepared under the US GAAP: Daimler 2019 Annual ReportLinks to an external site. Ford Motor Company 2019 Annual ReportLinks to an external site. Select, prepare, and compare two common types of each of the following ratios for MB and Ford: Liquidity, Solvency, Profitability, and Management Efficiency Ratios/Measures. You will have a total of eight ratios using the financial statements included in the Annual Reports for each of these two firms. It would be best to prepare two years of ratio results for each company. Include the basis of your calculations in an Excel file with separate labeled tabs (one labeled MB and the other labeled Ford) attached as part of your initial response. Then attach the final ratios you calculated for each company, side-by-side, into your initial posting response. For each ratio you have chosen and calculated, compare and contrast the results between these two firms. Most importantly, comment on how the differences in the basis of preparation of the respective financial statements, including the related accounting rules followed by each company, might impact the comparison of those ratios between these two firms. Hint: you will need to review the Footnotes to the Financial Statements and the Summary of Significant Accounting Policies for both MB and Ford to identify potential differences in the accounting standards used by both companies.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CPA Exam Review 2020 At Least Know This Auditing And Attestation

Authors: At Least Know This

1st Edition

1706038364, 978-1706038368

More Books

Students also viewed these Accounting questions