2013 Ford Annual Report- http://corporate.ford.com/doc/sr13-form-10-k.pdf View t
ID: 2459026 • Letter: 2
Question
2013 Ford Annual Report- http://corporate.ford.com/doc/sr13-form-10-k.pdf
View the 2013 Annual Report for the Ford Motor Company, a Fortune 50 company, linked here as well as on the Course Information page. Using this report, answer the following questions:
What were the cash and cash equivalents at the end of 2013 and 2012? What does the company classify as cash equivalents?
What were the total accounts receivable (net) at the end of 2013? At the end of 2012?
Assuming that all revenues were net credit sales, and that the total accounts receivable (net) at the end of 2011 were $8,281 million, compute the receivables turnover for 2013 and 2012. (Hint: Assume the total of accounts receivable is in trade receivables). Round your answer to two decimal places. What is your evaluation of the ratio and the difference between the two years?
Which inventory method(s) does the company use? Explain why you think the company selected this method(s).
Compute the inventory turnover ratio for 2013 and 2012 using the ending inventory instead of the average inventory. What is your evaluation of the difference?
What was the total amount of inventories on December 31, 2013 and 2012? What were the principal categories of inventory on these dates?
Explanation / Answer
Cash and cash equivalents
Particulars:::::::::::: :::::::::2013 Amount:::::::::::: ::: 2012 Amount
Automotive :::::::::::: ::::::::::::$25,116 :::::::::::::::::::::$ 24,425
Financial Services ::::::::::::::$11,452 :::::::::::::::::::::$ 11,518
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Total :::::::::::: :::::::::::: ::::: $36,568 :::::::::::::::::::::::::::: $35,943
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Explanation:
Particulars :::::::::::: :::::::::: 2013 Amount :::::::::::: :::::::::: 2012 Amount
Automotive
Cash and cash equivalents:::::::::::::::$ 4,959 :::::::::::::::::::::::: $ 6,247::::::::
Marketable securities::::::::::::::::::::::::$20,157 ::::::::::::::::::::: $18,178: ::::: :
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Total cash and marketable securities $25,116 :::::::::::::::::::::$ 24,425
Financial Services
Cash and cash equivalents::::::::::::::: $9,509:::::::::::::::::::::::: $9,412::::::::
Marketable securities::::::::::::::: ::: ::: $1,943::::::::::::::::::::::::$2,106:::::::::::
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Total cash and marketable securities $11,452 :::::::::::::::::::::$ 11,518
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II)Cash equivalents i classified as marketable securities from Automotive and Financial Services sources
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Total accounts receivable (net) at the end of 2013
Accounts Receivables, $ 5,641
Total accounts receivable (net) at the end of 2012
=$5,361
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Receivables turnover =Net credit sales / AVerage accounts receivable
2012
=$ $5,361 / $6821 ( $8,281 + $ $5,361 / 2)
=0.78
2013
$ 5,641 / $5501 ($5,361 + 5,641 )
=1.03
As per my evaluation 2012 receivable had decreased again 2013 receivable increased better than 2012.
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Total inventories calculated method sused in FIFO and LIFO
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