The consolidated statement of income for Ford Motor Company appears below.

Net income/(loss) attributable to ford motor company

Amounts per share attributable to ford motor company common and class B stock

1. What do you notice about the way revenues and expenses are partitioned?
2. For the Automotive division, compute the ratio (Cost of sales/Sales) for each of the three years presented. Interpret the results.
3. Look at the operating results for the automotive division. Is there any good news for Ford in these results?
4. Depreciation expense is reported by the Financial Services division but not by the automotive division. Explain why this is so.
5. Which of the company's two divisions seems to be performing better over time?
6. Is Ford a car company that finances autos or a finance company that makes cars?

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Ford Motor Company and Subsidiaries For the Years Ended December 31, 2011, 2010, and 2009 (in millions, except per share amounts) AUTOMOTIVE Revenues 2011 2010 2009 $128,168 $119,280 $103,868 s and expenses Cost of sales Selling, administrative and other expenses Total costs and expenses Operating income/(loss) Interest expense Interest income and other non-operating ...113,345 9,060 122,405 5,763 104,451 9,040 113,491 5,789 1,807 98,866 8,354 107,220 (3,352) 1,477 income/(expense), net (Note 19) Equity in net income/loss of affiliated companies Income/(Loss) before income taxes-Automotive FINANCIAL SERVICES Revenues Costs and expenses Interest expense Depreciation Operating and other expenses Provision for credit and insurance losses Total costs and expenses 825 479 6,250 (362) 526 4,146 5,284 330 785 8,096 9,674 12,415 3,614 1,843 675 (33) 6,099 413 21 2,431 4,345 2,024 845 5,313 3,937 738 1,030 11,018 552 (135) 1,814 6,998 315 ncome/(loss), net (Note 19). Equity in net income/(loss) of affiliated companies Income/(Loss) before income taxes-Financial Services TOTAL COMPANY Income/(Loss) before income taxes Provision for/(Benefit from) income taxes (Note 22) Income/(Loss) from continuing operations Income/(Loss) from discontinued operations Net income/(loss) Less: Income/(Loss) attributable to noncontrolling interests Net income/(loss) attributable to Ford Motor 3,003 8,681 (11,541) 20,222 7,149 6,557 6,557 2,599 2,712 5 2,717 20,222 Company 20,213 6,561 2,717 Income/(Loss) from continuing operations Income/(Loss) from discontinued operations. Net income/(loss) attributable to Ford Motor Company 20,213 6,561 2,712 5 2,717 $ 20,213 6,561 Basic income/(loss) Incoss)ooniinuing oprations Incyoss) fro disconiinud oations Net income/(loss) . ...$ . . . . 5.33 $1.90 $ 0.91 $ 5.331.90 0.91 s 494 166 0.86 494 166 0.86 Diluted income/(loss) Inc/odisoninud oxations Net income/(loss). . . . . Cash dividends declared 005 $