Prepare the following analysis using Ford’s interactive financial statements (ht
ID: 2709666 • Letter: P
Question
Prepare the following analysis using Ford’s interactive financial statements (http://www.sec.gov/cgi-bin/viewer?action=view&cik=37996&accession_number=0000037996-14-000010&xbrl_type=v#) for end of the Fiscal year 2013, 2012, and 2011. Submit an Excel worksheet that develops the following: (((PLEASE SUBMIT THE EXCEL SHEET)))
Prepare horizontal analysis by developing a comparative balance sheet for the current and previous year of the balance sheet included in the 10-K.
Prepare vertical analysis by developing a comparative income statement for the current and previous year of the income statement included in the 10-K.
Please calculate the following ratios based on the current and previous year’s financial statements in the 10-K report, showing your calculations on your Excel worksheet. Explain what each of these ratios mean:
Working capital
Current ratio
Quick ratio
Accounts receivable turnover
Total Asset Turnover
Inventory turnover
Total Debt to Equity Ratio
Long term Debt to Equity ratio
Profitability Ratio
Return on Assets
Return on Equity
Return on Revenue
Earnings per share on common stock
Price-earnings ratio
Dividend yield
Explanation / Answer
The ratio analysis is as follows:
S.no. Ratio Formulae 2013 2012 1 Working capital Current assets 131585 125174 Current liabilites 19531 19308 Current assets-current liabilites 112054 105866 2 Current ratio Current assets 131585 125174 Current liabilites 19531 19308 Current assets/current liabilites 6.74 6.48 3 Quick ratio Quick assets 123877 117812 Current liabilites 19531 19308 Quick assets/current liabilites 6.34 6.10 4 Accounts receivable turnover Net credit sales 7148 5664 Average accounts receivable 74236 70991 Net credit sales/Average accounts receivable 0.10 0.08