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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:
    1. Calculate Ford's net income after accounting for the restructuring costs.
    2. Prepare a comparative income statement showing the impact of restructuring costs on net income.
    3. Analyze the operating profit margin before and after the restructuring costs.
    4. Discuss the strategic reasons for undertaking restructuring activities and their financial implications.
    5. Evaluate Ford's ability to maintain profitability amid restructuring efforts.

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