Question 15 on the assignment is a really tough question that I can not answer... hours of research and reading and I am just not able to solve this one.

We are told to use the https://www.sec.gov/edgar/searchedgar/companysearch.html

Edgar search data base and the company is Ford Motor Company and specifically find the 10-K form to answer the question..

omgoodness.... i am hoping someone can help and point me in the right direction.

Running head: FINANCIAL STATEMENT 1 Financial Statement Ida Pesce Figueroa Capella University FINANCIAL STATEMENT 2 Analysis of a Financial Statement All numbers are represented in millions. 1. What were the company's assets, liabilities, and owners' equity amounts at the end of fiscal year? Assets 237,951 2. Liabilities 208,668 Owners equity 29,283 If the company were liquidated at the end of the fiscal year, are the shareholders guaranteed to receive the total shown in your answer for owners' equity (question 1)? Clearly explain why or why not. No, preferred stock + Intangible assets could shift in value. 3. What were the company's noncurrent liabilities for the fiscal year? Auto long term debt 13,222 Fin service long term debt 80,079 4. What was the company's current ratio for the fiscal year? Assets / Liabilities = 1.14 5. For the fiscal year, did the company have a cash inflow or outflow from investing activities? How much? -178 outflow equity investment 6. For the fiscal year, how much was the company's cash flow from operations? Why is this not the same amount as the company's operating income? Explain in general terms. 6385 Operating Cash Flow \"We measure and evaluate our Automotive segment operating cash flow on a different basis than Net cash provided by/(used in) operating activities in our consolidated statement of cash flows. Automotive segment operating cash flow includes additional elements management considers to be related to our automotive operating activities, primarily capital spending and non-designated derivatives, and excludes outflows for funded pension contributions, separation payments, and other items that are considered operating cash flows under U.S. GAAP.\" Ford Motor 10-K (2017). FINANCIAL STATEMENT 3 7. What is the company's revenue recognition policy? (Hint: Look in the notes to the financial statements.) Revenue Recognition Automotive Segment \"Automotive revenue is generated primarily by sales of vehicles, parts, and accessories. Revenue is recorded when all risks and rewards of ownership are transferred to our customers (generally dealers and distributors). For the majority of our sales, this occurs when products are shipped from our manufacturing facilities. When we give our dealers the right to return eligible parts for credit, we reduce the related revenue for expected returns. We sell vehicles to fleet customers, primarily daily rental car companies, subject to guaranteed repurchase options. These vehicles are accounted for as operating leases. At the time of sale, the proceeds are recorded as deferred revenue in other liabilities and deferred revenue in the non-current liabilities section of our consolidated balance sheet. The difference between the proceeds and the guaranteed repurchase amount is recognized in automotive revenues over the term of the lease using a straight line method. On average, leases remain outstanding for approximately one year. The cost of the vehicle is recorded in Net investment in operating leases on our consolidated balance sheet and the difference between the cost of the vehicle and the estimated auction value is depreciated in Cost of sales over the term of the lease. Proceeds from the sale of the vehicle at auction are recognized in automotive revenues at the time of sale.\" Ford Motor 10-K (2017). 8. Calculate general, administrative, and selling expenses as a percentage of sales for the past three fiscal years. By what percentage did these expenses increase or decrease? This is calculated as Percentage Change = (Current Year % Prior Year %) / Prior Year %. Current Yr Prior Yr/ Prior Yr 8 9. 7 7 = (14) Compute the company's total asset turnover for the fiscal year and explain its meaning. Show all of your work. FINANCIAL STATEMENT 4 Balance sheet is where the info was found and it is the efficiency of the company's assets to generate sales or revenue. 2015 Assets 2016 224,925 237,951 = 462,876/2= 231,438 10. How much is in the prepaid expenses and other current assets account at the end of fiscal year? Where did you find this information? Pre-paid 89,188 and current assets of 3,368 found on the balance sheet 11. What did the company report for deferred rent and other liabilities at the end of fiscal year? Where did you find this information? 24,395 and it was found on the balance sheet 12. What is the difference between prepaid rent and deferred rent? Pre-paid is a current asset and deferred will be a non-current or long term asset. 13. What are accrued liabilities? Describe in general terms. \"Accrued liabilities are liabilities that reflect expenses on the income statement that have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received.\" Wikipedia (2017) 14. What would generate the interest income that is reported on the income statement? This could be interest earned on funds or with Ford Motor they have a finance division that would earn interest on loans. FINANCIAL STATEMENT 5 15. What are the company's earnings per share (basic only) for the three years reported? 2014 Net Income Pref Dividends 2015 1230 2016 7371 4607 $533,000K $625,000K $710,000K Total Earnings 4556 Outstanding Shares 3958 4002 3999 EPS Net income- preferred dividens = total earnings/ # outstanding shares (on bal sheet) 16. Compute the company's net profit margin for the three years reported. What does the trend suggest to you? 2014 Sales/Revenue 144077 Net Income Profit 2015 2016 148558 151800 1230 .8 7371 4.9 4607 3.0 It is apparent that 2015 was the most successful year as the profit margin is higher. Interesting that revenue was even lower than 2016 but 2015 was able to get a much higher profit. 17. How much cash and cash equivalents does the company report at the end of the fiscal year? 15,905 18. What was the change in accounts receivable and how did it affect net cash provided by operating activities for the current year? (2,855) net cash (25,352) The accounts receivable increase will give less cash to a company and accounts receivable decrease will give more cash to a company. FINANCIAL STATEMENT 6 19. Compute the company's gross profit percentage for the most recent two years. Has it risen or fallen? Explain the meaning of the change. The profit for 2015 was 4.9 vs 2016 3.0. The company had less profit driven from sales in 2016 vs 2015. Investment Reccomendation1 [To add a table of contents (TOC), apply the appropriate heading style to just the heading text at the start of a paragraph and it will show up in your TOC. To do this, select the text for your heading. Then, on the Home tab, in the Styles gallery, click the style you need.] FINANCIAL STATEMENT 7 References Last Name, F. M. (Year). Article Title. Journal Title, Pages From - To. Last Name, F. M. (Year). Book Title. City Name: Publisher Name