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Ford Motor Company incurred $2 billion in restructuring costs related to closing underperforming plants. The company provided the following financial figures: Restructuring Costs: $2 billion
- Ford Motor Company incurred $2 billion in restructuring costs related to closing underperforming plants. The company provided the following financial figures:
- Restructuring Costs: $2 billion
- Total Revenue: $160 billion
- Operating Income: $12 billion
- Net Income: $8 billion
- Requirements:
- Calculate Ford's net income after accounting for the restructuring costs.
- Prepare a comparative income statement showing the impact of restructuring costs on net income.
- Analyze the operating profit margin before and after the restructuring costs.
- Discuss the strategic reasons for undertaking restructuring activities and their financial implications.
- Evaluate Ford's ability to maintain profitability amid restructuring efforts.
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