View the 2013 Annual Report for the Ford Motor Company, a Fortune 50 company, li
ID: 2492852 • Letter: V
Question
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: annual report - http://corporate.ford.com/doc/sr13-form-10-k.pdf
31.What was the total amount of intangible assets that the company reported at the end of 2013, and how did the company capitalize and amortize the different intangible assets?
32.Why does the company amortize some of its intangible assets but not others?
33.Do you think that the company has additional “intangibles” that are not recorded on the balance sheet? Why? How would this issue affect your understanding of the company’s financial performance?
34.What were the total debt and debt components at the end of 2013?
35.What are the company’s commitments and contingencies?
36.What are the terms of the company’s credit agreement?
Explanation / Answer
Answer for question no.31:
Amount of Intangiables reported at the end of 2013 is $87 millions. Finite living intabgiables are ammortized over the estimated useful lifes.
Indefinite lived intangiables are tested for their impairment annually or as the circumstances suggest.
Answer for question no.32:
The company bifiurcated its intangiable assets into Finite lived intangiables assets and indefinite lived intangiable assets. It followed a policy where in only Finite lived intangiable assets are ammortized over the estimated useful of the intangiable assets and the indefinite lived intangiable assets are tested for impairment and accordingly written off.
Answer for question no.34:
Total company debt as on December 31, 2013 is 114,688,000.
Debt components at the end of 2013 are as follows:
Answer for question no.35:
Company's commitments and contingencies consists of guarantees and idemnifications,litigations, claims and warranty.
Particulars Amount Short term 562 US Department energy advanced technology vehicles manufacturing incentives 591 Other debt 104 Public unsecured debt securities 6799 Unamortized (Discount)/Premium -148 Convertible notes 908 Unamortized (Discount)/Premium -110 DOE ATVM incentive program 4424 EIB Credit facilities 1295 Other debt 1255 Unamortized (Discount)/Premium 3 Short term debt Asset backed commercial paper 3364 Other asset based short term debt 1963 Floating rate demand notes 5319 Commerical paper 2003 Other short term debt 2345 Unsecured debt Notes payable within one year 4475 Notes payable after one year 38914 Asset backed debt Notes payable within one year 17337 Notes payable after one year 23273 Unamortized (Discount)/Premium -91 Fair value adjustment 103 Total 114688Related Questions
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