Ford:

Apple:

Answer questions 1-1f for multiple likes the information is connected below as well.

1. Analyze Apple and ford corporation's balance sheet and income statement using horizontal analysis. What trends do you detect from those statements? b. Analyze Apple and ford corporation's balance sheet and income statement using vertical analysis. What trends do you detect from those statements? c. For Apple and ford corporations compute the following liquidity ratios for the two most recent reporting periods: current ratio accounts receivable turnover ratio, and inventory turnover ratio. d. For Apple and ford corporations compute the following solvency ratios for the two most recent reporting periods: debt to assets ratio and debt to equity ratio. What can you conclude from these ratios? e. For Apple and ford corporations compute the following profitability ratios for the two most recent reporting periods: gross margin ratio, net profit margin ratio, return on assets, and return on equity. What can you conclude from these ratios? f. What inferences can you conclude from a comparison of the two corporation's horizontal analysis, vertical analysis, liquidity ratios, solvency ratios, and profitability ratios? CONSOLIDATED BALANCE SHEETS (in millions) ASSETS \begin{tabular}{c} December 31, December 31, \\ 2020 \\ \hline \end{tabular} Cash and cash equivalonts Marketable securities Ford Credit finance receivabies, net of allowance lot credit losses of $394 and $282 Trade and other recelvables, less allowances of 584 and $48 Inventories Other assets Total current assets Ford Credit finance roceivables, not of allowance for credit losses of $911 and $843 Net investment in operating leases Net proporty Equity in net assets of afliliated companies Delerred income taxes Other assets Total assets LIABILITIES Payables Other liabilities and doterred revenue Dobt payable within one year Company excluding Ford Credt Ford Crodt Total current Ilabilities Other liabilities and deferred revenue Long-lerm debt Company excluding Ford Credit Ford Credir Deferred income taxes Total IIabililes EQUITY Common Slock, par value $0.01 per share 44.050 milion shares issued of 6 billion authorked : Class 8 Stock, par value $0.01 per share (71 milign shares ksued of 530 milion authorized) Caplai in excess of par value of stock. Retained eamings Accumulated other comprehensive incomerloss) \begin{tabular}{l|l|l|l} 32,204 & 5 & 22,349 \\ 23,645 & 18,686 \end{tabular} Treasury stock Total equity attributable to Ford Motor Company Equily atributable to noncontroling interests Total equity Total liabillties and equity \begin{tabular}{rr} 1,374 & 3,175 \\ 49,969 & 46,517 \\ \hline 97,192 & 90,727 \\ 28,379 & 27,705 \end{tabular} FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in millions, except per share amounts) CONSOLIDATED BALANCE SHEEIS (In millions, except number of shares which are reflected in thousands and par value) Interest Expense Interest Expense Growth Gross Interest Expense Interest Capitalized Pretaxincome Pretax income Growth. Pretax Margin Income Tax Income Tax - Current Domestic Income Tax - Current Foreign Income Tax-Deferred Domestic Income Tax - Deterred Foreigh Income Tax Credits Equityin Affiliates Other After Tax income (Expense) Compolidated Net incomen 119.18 72.9865.74B67.09B109.21B 38.79969.83%206% Minority interest Lopenset Net lincome Net income Growth Net Markin Growth Extraordinaries E. Discontinued Operations Fxtraitens 6 Cain/oss Sale or Ausets Conulativn iffect Accountine Che Net Margin Growth Extraordinaries & Discontinued Operations Extra Items \& GaindLoss Sale Of Assets Cumulative Effect-Accounting Chg Discontinued Operations Net Income After Extraordinaries Preferred Dividends Net income Available to Common EPS (Basic) EPS (Basic) Growth Basic Shares Outstandine: EP5 (Diluted) EPS (Diluted) Growth Diluted Shares Qutstandine EBITDA EBIIDA Growth EBITDAMargin. 1. Analyze Apple and ford corporation's balance sheet and income statement using horizontal analysis. What trends do you detect from those statements? b. Analyze Apple and ford corporation's balance sheet and income statement using vertical analysis. What trends do you detect from those statements? c. For Apple and ford corporations compute the following liquidity ratios for the two most recent reporting periods: current ratio accounts receivable turnover ratio, and inventory turnover ratio. d. For Apple and ford corporations compute the following solvency ratios for the two most recent reporting periods: debt to assets ratio and debt to equity ratio. What can you conclude from these ratios? e. For Apple and ford corporations compute the following profitability ratios for the two most recent reporting periods: gross margin ratio, net profit margin ratio, return on assets, and return on equity. What can you conclude from these ratios? f. What inferences can you conclude from a comparison of the two corporation's horizontal analysis, vertical analysis, liquidity ratios, solvency ratios, and profitability ratios? CONSOLIDATED BALANCE SHEETS (in millions) ASSETS \begin{tabular}{c} December 31, December 31, \\ 2020 \\ \hline \end{tabular} Cash and cash equivalonts Marketable securities Ford Credit finance receivabies, net of allowance lot credit losses of $394 and $282 Trade and other recelvables, less allowances of 584 and $48 Inventories Other assets Total current assets Ford Credit finance roceivables, not of allowance for credit losses of $911 and $843 Net investment in operating leases Net proporty Equity in net assets of afliliated companies Delerred income taxes Other assets Total assets LIABILITIES Payables Other liabilities and doterred revenue Dobt payable within one year Company excluding Ford Credt Ford Crodt Total current Ilabilities Other liabilities and deferred revenue Long-lerm debt Company excluding Ford Credit Ford Credir Deferred income taxes Total IIabililes EQUITY Common Slock, par value $0.01 per share 44.050 milion shares issued of 6 billion authorked : Class 8 Stock, par value $0.01 per share (71 milign shares ksued of 530 milion authorized) Caplai in excess of par value of stock. Retained eamings Accumulated other comprehensive incomerloss) \begin{tabular}{l|l|l|l} 32,204 & 5 & 22,349 \\ 23,645 & 18,686 \end{tabular} Treasury stock Total equity attributable to Ford Motor Company Equily atributable to noncontroling interests Total equity Total liabillties and equity \begin{tabular}{rr} 1,374 & 3,175 \\ 49,969 & 46,517 \\ \hline 97,192 & 90,727 \\ 28,379 & 27,705 \end{tabular} FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in millions, except per share amounts) CONSOLIDATED BALANCE SHEEIS (In millions, except number of shares which are reflected in thousands and par value) Interest Expense Interest Expense Growth Gross Interest Expense Interest Capitalized Pretaxincome Pretax income Growth. Pretax Margin Income Tax Income Tax - Current Domestic Income Tax - Current Foreign Income Tax-Deferred Domestic Income Tax - Deterred Foreigh Income Tax Credits Equityin Affiliates Other After Tax income (Expense) Compolidated Net incomen 119.18 72.9865.74B67.09B109.21B 38.79969.83%206% Minority interest Lopenset Net lincome Net income Growth Net Markin Growth Extraordinaries E. Discontinued Operations Fxtraitens 6 Cain/oss Sale or Ausets Conulativn iffect Accountine Che Net Margin Growth Extraordinaries & Discontinued Operations Extra Items \& GaindLoss Sale Of Assets Cumulative Effect-Accounting Chg Discontinued Operations Net Income After Extraordinaries Preferred Dividends Net income Available to Common EPS (Basic) EPS (Basic) Growth Basic Shares Outstandine: EP5 (Diluted) EPS (Diluted) Growth Diluted Shares Qutstandine EBITDA EBIIDA Growth EBITDAMargin