In this assignment, you will be using a slightly simplified version of Ford Motor Company's income statement and balance sheet.

Compute the following for 2018 and 2019: net working capital, profit margin, dividend payout ratio, total asset turnover, quick ratio, total debt ratio, ROA. Compute each number as additional rows below the income statement. Format your cells so that they have 2 decimal places only, and the correct formatting (dollars, percents, ratios, etc). Ratios should be in number format with 2 decimal places; returns, growth rates, and profit margin should be in percent.

Suppose that sales growth from 2019 to 2020 will be 15%. Also suppose that all items on the income statement, and all assets, also grow at the same rate. In addition, assume that payables also grow at this same rate (they are spontaneous liabilities), but that no other liabilities do, apart from retained earnings. Remember, retained earnings will grow by the amount indicated in the income statement.

Suppose now that revenue (and the rest of the income statement, and payables, and all assets) grows at the 2019 internal growth rate with zero dividends, instead of 15% (notice that the quick ratio may not stay constant in this case). What is the internal growth rate? What is the EFN in this case? Explain why it is not zero. At what growth rate is the EFN equal to zero for this scenario?

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 15,905	$ 14,272
Marketable securities (Note 5)	22,922	20,904
Financial Services finance receivables, net (Note 6)	46,266	45,137
Trade and other receivables, less allowances of $372 and $392	11,102	11,042
Inventories (Note 9)	9,898	8,319
Other assets	6,368	2,913
Total current assets	112,461	102,587
Financial Services finance receivables, net (Note 6)	49,924	45,554
Net investment in operating leases	28,829	27,093
Net property (Note 11)	32,072	30,163
Equity in net assets of affiliated companies (Note 10)	3,304	3,224
Deferred income taxes (Note 21)	9,705	11,509
Other assets	5,656	4,795
Total assets	241,951	224,925
LIABILITIES
Payables	21,392	20,366
Other current liabilities and deferred revenue (Note 12)	19,316	19,089
Long-Term Debt	142,970	132,854
Deferred income taxes (Note 21)	691	502
Other liabilities and deferred revenue (Note 12)	24,395	23,457
Total liabilities	208,764	196,268
EQUITY
Capital in excess of par value of stock	25,688	21,477
Retained earnings	8,621	8,157
Treasury stock	(1,122)	(977)
Total equity	33,187	28,657
Total liabilities and equity	241,951	224,925
CONSOLIDATED INCOME STATEMENT - USD ($) $ in Millions
	Dec. 31, 2019	Dec. 31, 2018
Revenues
Sales	151,800	149,558
Costs and expenses
Cost of sales	126,584	124,041
Selling, administrative, and other expenses	12,196	10,502
Financial Services interest, operating, and other expenses	8,904	7,368
Total costs and expenses	147,684	141,911
Interest expense on Automotive debt	894	773
Equity in net income of affiliated companies	1,780	1,818
Income before income taxes	6,796	10,252
Provision for/(Benefit from) income taxes (Note 21)	2,189	2,881
Net income	4,607	7,371
Cash Dividends	$ 4,143	$ 4,437
Addition to retained earnings	$ 464	$ 2,934