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It won't let me respond to your comment for some reason. I'm confused, are you saying you don't know how to show the formula on
It won't let me respond to your comment for some reason. I'm confused, are you saying you don't know how to show the formula on excel?
Analysis: (use Excel to complete this section) 50. Provide common-size analysis of your company's income statement and balance sheet for the 2 most recent years (must be done using Excel with formulas). 51. Provide horizontal analysis of your company's income statement and balance sheet, showing the dollar amount and percent of change using the 2 most recent years (you must use an Excel spreadsheet with formulas). 52. Perform ratio analysis on your company using the ratios listed in Exhibit 13.16 on page 505 of your text (these must be in an Excel spreadsheet, using formulas to calculate the ratios). You should present them in a similar format as the text: group by category, list name of ratio, formula in words, and the ratio calculation. Give a short explanation of your conclusions about your company after each category of ratios (i.e. How liquid is your company? How efficiently is it using its assets? etc.). FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts) For the years ended December 31, 2017 2018 2019 $ Revenues Automotive Ford Credit Mobility Total revenues (Note 4) 145,653 $ 11,113 10 156,776 148,294 $ 12,018 26 160,338 143,599 12,260 41 155,900 Costs and expenses Cost of sales Selling, administrative, and other expenses Ford Credit interest, operating, and other expenses Total costs and expenses Operating income 131,321 11,527 9,047 151,895 4,881 136,269 11,403 9,463 157,135 3,203 134,693 11,161 9,472 155,326 574 1,171 963 Interest expense on Automotive debt Interest expense on Other debt 1,133 57 57 57 2,247 3,267 1,201 8,159 Other income/(loss), net (Note 5) Equity in net income of affiliated companies Income!(Loss) before income taxes Provision for/(Benefit from) income taxes (Note 7) Net income Less: Income attributable to noncontrolling interests Net income attributable to Ford Motor Company (226) 32 (640) (724) 84 123 4,345 650 3,695 18 3,677 402 7,757 26 37 $ 7,731 $ 47 EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 8) Basic income 1.94 $ Diluted income 1.93 $ 0.93 0.92 0.01 0.01 Weighted-average shares used in computation of earnings per share Basic shares Diluted shares 3,975 3,998 3,974 3,998 3,972 4,004 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions) For the years ended December 31, 2017 2018 2019 7,757 $ 3,695 $ Net income $ 84 Other comprehensive income/loss), net of tax (Note 25) Foreign currency translation Marketable securities 314 174 130 Derivative instruments (34) (265) 37 52 (523) (11) 183 (56) (407) 3,288 Pension and other postretirement benefits Total other comprehensive incomel(loss), net of tax Comprehensive income/(loss) Less: Comprehensive me/loss) attributable to noncontroll interests Comprehensive incomel(loss) attributable to Ford Motor Company (689) 23 (362) (278) 37 (315) 7,809 24 18 $ 7,785 $ 3,270 $ The accompanying notes are part of the consolidated financial statements. FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) December 31, 2018 December 31, 2019 $ ASSETS Cash and cash equivalents (Note 9) Marketable securities (Note 9) Ford Credit finance receivables, net (Note 10) Trade and other receivables, less allowances of $94 and $63 Inventories (Note 12) Assets held for sale (Note 10 and Note 24) Other assets Total current assets 16,718 $ 17,233 54,353 11,195 11,220 17,504 17,147 53,651 9,237 10,786 2,383 3,339 114,047 3,930 114,649 Ford Credit finance receivables, net (Note 10) Net investment in operating leases (Note 13) Net property (Note 14) Equity in net assets of affiliated companies (Note 15) Deferred income taxes (Note 7) Other assets Total assets 55,544 29,119 36,178 2,709 10,412 7,929 256,540 $ 53,703 29,230 36,469 2,519 11,863 10,706 258,537 $ $ LIABILITIES Payables Other liabilities and deferred revenue (Note 17) Automotive debt payable within one year (Note 20) Ford Credit debt payable within one year (Note 20) Other debt payable within one year (Note 20) Liabilities held for sale (Note 24) Total current liabilities 21,520 20,556 2,314 51,179 20,673 22,987 1,445 52,371 130 526 98,132 95,569 Other liabilities and deferred revenue (Note 17) Automotive long-term debt (Note 20) Ford Credit long-term debt (Note 20) Other long-term debt (Note 20) Deferred income taxes (Note 7) Total liabilities 23,588 11,233 88,887 600 597 220,474 25,324 13,233 87,658 470 490 225,307 100 40 40 Redeemable noncontrolling interest (Note 23) EQUITY Common Stock, par value $.01 per share (4,011 million shares issued of 6 billion authorized) Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) Capital in excess of par value of stock Retained earnings 1 1 22,006 22,668 22,165 20,320 40 1 EQUITY Common Stock, par value $.01 per share (4,011 million shares issued of 6 billion authorized) Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) Capital in excess of par value of stock Retained earnings Accumulated other comprehensive income (loss) (Note 25) Treasury stock Total equity attributable to Ford Motor Company Equity attributable to noncontrolling interests Total equity Total liabilities and equity 22,006 22,668 (7,366) (1,417) 35,932 34 35,966 256,540 $ 40 1 22,165 20,320 (7,728) (1,613) 33,185 45 33,230 258,537 $ The following table includes assets to be used to settle liabilities of the consolidated variable interest entities ("VIES"). These assets and liabilities are included in the consolidated balance sheet above. See Note 26 for additional information on our VIES. December 31, 2018 December 31, 2019 $ ASSETS Cash and cash equivalents Ford Credit finance receivables, net Net investment in operating leases Other assets LIABILITIES Other liabilities and deferred revenue Debt The accompanying notes are part of the consolidated financial statements. 2,728 $ 58,662 16,332 27 3,202 58,478 14,883 12 $ $ 24 53,269 19 50,865 Ratio Formula Measure of Liquidity and Efficiency Current ratio Short-term debt-paying ability = Acid-test ratio Immediate short-term debt-paying ability = Accounts receivable turnover Efficiency of collection Inventory turnover Efficiency of inventory management Current assets Current liabilities Cash + Short-term investments + Current receivables Current liabilities Net sales Average accounts receivable, net Cost of goods sold Average inventory Accounts receivable, net X 365 Net sales Ending inventory Cost of goods sold Net sales Average total assets Days' sales uncollected Liquidity of receivables Days' sales in inventory X 365 Liquidity of inventory Total asset turnover Efficiency of assets in producing sales Solvency Debt ratio Creditor financing and leverage Equity ratio Owner financing Total liabilities Total assets Total equity Total assets Total liabilities Total equity Income before interest expense and income Interest expense Debt-to-equity ratio Debt versus equity financing Times interest earned Protection in meeting interest payments Profitability Profit margin ratio Net income in each sales dollar = Gross margin ratio Gross margin in each sales dollar = Return on total assets Overall profitability of assets = Return on common stockholders' equity Net income Net sales Net sales Cost of goods sold Net sales Net income Average total assets Net income Preferred dividends Average common stockholders' equity Shareholders' equity applicable to common shares Number of common shares outstanding Net income Preferred dividends Weighted-average common shares outstanding Profitability of owner investment Book value per common share Liquidation at reported amounts = Basic earnings per share Net income per common share Market Prospects Price-earnings ratio Market value relative to earnings Market price per common share Earnings per share Annual cash dividends per share Market price per share Dividend yield Cash return per common share Analysis: (use Excel to complete this section) 50. Provide common-size analysis of your company's income statement and balance sheet for the 2 most recent years (must be done using Excel with formulas). 51. Provide horizontal analysis of your company's income statement and balance sheet, showing the dollar amount and percent of change using the 2 most recent years (you must use an Excel spreadsheet with formulas). 52. Perform ratio analysis on your company using the ratios listed in Exhibit 13.16 on page 505 of your text (these must be in an Excel spreadsheet, using formulas to calculate the ratios). You should present them in a similar format as the text: group by category, list name of ratio, formula in words, and the ratio calculation. Give a short explanation of your conclusions about your company after each category of ratios (i.e. How liquid is your company? How efficiently is it using its assets? etc.). FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts) For the years ended December 31, 2017 2018 2019 $ Revenues Automotive Ford Credit Mobility Total revenues (Note 4) 145,653 $ 11,113 10 156,776 148,294 $ 12,018 26 160,338 143,599 12,260 41 155,900 Costs and expenses Cost of sales Selling, administrative, and other expenses Ford Credit interest, operating, and other expenses Total costs and expenses Operating income 131,321 11,527 9,047 151,895 4,881 136,269 11,403 9,463 157,135 3,203 134,693 11,161 9,472 155,326 574 1,171 963 Interest expense on Automotive debt Interest expense on Other debt 1,133 57 57 57 2,247 3,267 1,201 8,159 Other income/(loss), net (Note 5) Equity in net income of affiliated companies Income!(Loss) before income taxes Provision for/(Benefit from) income taxes (Note 7) Net income Less: Income attributable to noncontrolling interests Net income attributable to Ford Motor Company (226) 32 (640) (724) 84 123 4,345 650 3,695 18 3,677 402 7,757 26 37 $ 7,731 $ 47 EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 8) Basic income 1.94 $ Diluted income 1.93 $ 0.93 0.92 0.01 0.01 Weighted-average shares used in computation of earnings per share Basic shares Diluted shares 3,975 3,998 3,974 3,998 3,972 4,004 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions) For the years ended December 31, 2017 2018 2019 7,757 $ 3,695 $ Net income $ 84 Other comprehensive income/loss), net of tax (Note 25) Foreign currency translation Marketable securities 314 174 130 Derivative instruments (34) (265) 37 52 (523) (11) 183 (56) (407) 3,288 Pension and other postretirement benefits Total other comprehensive incomel(loss), net of tax Comprehensive income/(loss) Less: Comprehensive me/loss) attributable to noncontroll interests Comprehensive incomel(loss) attributable to Ford Motor Company (689) 23 (362) (278) 37 (315) 7,809 24 18 $ 7,785 $ 3,270 $ The accompanying notes are part of the consolidated financial statements. FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) December 31, 2018 December 31, 2019 $ ASSETS Cash and cash equivalents (Note 9) Marketable securities (Note 9) Ford Credit finance receivables, net (Note 10) Trade and other receivables, less allowances of $94 and $63 Inventories (Note 12) Assets held for sale (Note 10 and Note 24) Other assets Total current assets 16,718 $ 17,233 54,353 11,195 11,220 17,504 17,147 53,651 9,237 10,786 2,383 3,339 114,047 3,930 114,649 Ford Credit finance receivables, net (Note 10) Net investment in operating leases (Note 13) Net property (Note 14) Equity in net assets of affiliated companies (Note 15) Deferred income taxes (Note 7) Other assets Total assets 55,544 29,119 36,178 2,709 10,412 7,929 256,540 $ 53,703 29,230 36,469 2,519 11,863 10,706 258,537 $ $ LIABILITIES Payables Other liabilities and deferred revenue (Note 17) Automotive debt payable within one year (Note 20) Ford Credit debt payable within one year (Note 20) Other debt payable within one year (Note 20) Liabilities held for sale (Note 24) Total current liabilities 21,520 20,556 2,314 51,179 20,673 22,987 1,445 52,371 130 526 98,132 95,569 Other liabilities and deferred revenue (Note 17) Automotive long-term debt (Note 20) Ford Credit long-term debt (Note 20) Other long-term debt (Note 20) Deferred income taxes (Note 7) Total liabilities 23,588 11,233 88,887 600 597 220,474 25,324 13,233 87,658 470 490 225,307 100 40 40 Redeemable noncontrolling interest (Note 23) EQUITY Common Stock, par value $.01 per share (4,011 million shares issued of 6 billion authorized) Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) Capital in excess of par value of stock Retained earnings 1 1 22,006 22,668 22,165 20,320 40 1 EQUITY Common Stock, par value $.01 per share (4,011 million shares issued of 6 billion authorized) Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) Capital in excess of par value of stock Retained earnings Accumulated other comprehensive income (loss) (Note 25) Treasury stock Total equity attributable to Ford Motor Company Equity attributable to noncontrolling interests Total equity Total liabilities and equity 22,006 22,668 (7,366) (1,417) 35,932 34 35,966 256,540 $ 40 1 22,165 20,320 (7,728) (1,613) 33,185 45 33,230 258,537 $ The following table includes assets to be used to settle liabilities of the consolidated variable interest entities ("VIES"). These assets and liabilities are included in the consolidated balance sheet above. See Note 26 for additional information on our VIES. December 31, 2018 December 31, 2019 $ ASSETS Cash and cash equivalents Ford Credit finance receivables, net Net investment in operating leases Other assets LIABILITIES Other liabilities and deferred revenue Debt The accompanying notes are part of the consolidated financial statements. 2,728 $ 58,662 16,332 27 3,202 58,478 14,883 12 $ $ 24 53,269 19 50,865 Ratio Formula Measure of Liquidity and Efficiency Current ratio Short-term debt-paying ability = Acid-test ratio Immediate short-term debt-paying ability = Accounts receivable turnover Efficiency of collection Inventory turnover Efficiency of inventory management Current assets Current liabilities Cash + Short-term investments + Current receivables Current liabilities Net sales Average accounts receivable, net Cost of goods sold Average inventory Accounts receivable, net X 365 Net sales Ending inventory Cost of goods sold Net sales Average total assets Days' sales uncollected Liquidity of receivables Days' sales in inventory X 365 Liquidity of inventory Total asset turnover Efficiency of assets in producing sales Solvency Debt ratio Creditor financing and leverage Equity ratio Owner financing Total liabilities Total assets Total equity Total assets Total liabilities Total equity Income before interest expense and income Interest expense Debt-to-equity ratio Debt versus equity financing Times interest earned Protection in meeting interest payments Profitability Profit margin ratio Net income in each sales dollar = Gross margin ratio Gross margin in each sales dollar = Return on total assets Overall profitability of assets = Return on common stockholders' equity Net income Net sales Net sales Cost of goods sold Net sales Net income Average total assets Net income Preferred dividends Average common stockholders' equity Shareholders' equity applicable to common shares Number of common shares outstanding Net income Preferred dividends Weighted-average common shares outstanding Profitability of owner investment Book value per common share Liquidation at reported amounts = Basic earnings per share Net income per common share Market Prospects Price-earnings ratio Market value relative to earnings Market price per common share Earnings per share Annual cash dividends per share Market price per share Dividend yield Cash return per common shareStep by Step Solution
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