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Ford Motor Company reported the following financial information for the year: Net Sales: $160 billion Cost of Goods Sold: $120 billion Operating Expenses: $25 billion
- Ford Motor Company reported the following financial information for the year:
- Net Sales: $160 billion
- Cost of Goods Sold: $120 billion
- Operating Expenses: $25 billion
- Income Tax Expense: $5 billion
- Net Income: $10 billion
- Requirements:
- Calculate Ford's gross profit margin for the year.
- Prepare a classified income statement showing the components of operating expenses.
- Analyze the effective tax rate for Ford based on income tax expense and net income.
- Discuss Ford's profitability ratios, including return on assets (ROA) and return on equity (ROE).
- Evaluate the impact of currency exchange rates on Ford's international sales.
- Net Sales: $160 billion
- Cost of Goods Sold: $120 billion
- Operating Expenses: $25 billion
- Income Tax Expense: $5 billion
- Net Income: $10 billion
- Calculate Ford's gross profit margin for the year.
- Prepare a classified income statement showing the components of operating expenses.
- Analyze the effective tax rate for Ford based on income tax expense and net income.
- Discuss Ford's profitability ratios, including return on assets (ROA) and return on equity (ROE).
- Evaluate the impact of currency exchange rates on Ford's international sales.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
