Assets Cash $ 19,927 Receivables 61,469 Inventory 10,128 1. The following is the balance sheet for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assets Cash $ 19,927 Receivables 61,469 Inventory 10,128 1. The following is the balance sheet for Ford Motor Company as of December 31, 1994 (in millions): Accounts Payable 1. Liabilities Debt due within 1 year . Other Current Liabilities Current Assets 91,524 Current Liabilities Fixed Assets 45,586 Short-Term Debt Long-Term Debt Equity $ 11,635 36,240 2,721 50,596 36,200 37,490 12,824 $137,110 Total Assets $137,110 The firm had revenues of $154,951 million in 1994 and cost of goods sold of $103,817 million. a. Estimate the net working capital b. Estimate the noncash working capital. c. Why is Ford's working capital so high? If you were told that Ford Capital (the financing arm of Ford) Total Liabilities was consolidated into this balance sheet, would that help you with your explanation? d. Estimate noncash working capital as a percent of revenues. If you were asked to estimate the noncash working capital needs for a new automobile fac- tory that Ford was constructing, would you use this ratio? Why or why not? Assets Cash $ 19,927 Receivables 61,469 Inventory 10,128 1. The following is the balance sheet for Ford Motor Company as of December 31, 1994 (in millions): Accounts Payable 1. Liabilities Debt due within 1 year . Other Current Liabilities Current Assets 91,524 Current Liabilities Fixed Assets 45,586 Short-Term Debt Long-Term Debt Equity $ 11,635 36,240 2,721 50,596 36,200 37,490 12,824 $137,110 Total Assets $137,110 The firm had revenues of $154,951 million in 1994 and cost of goods sold of $103,817 million. a. Estimate the net working capital b. Estimate the noncash working capital. c. Why is Ford's working capital so high? If you were told that Ford Capital (the financing arm of Ford) Total Liabilities was consolidated into this balance sheet, would that help you with your explanation? d. Estimate noncash working capital as a percent of revenues. If you were asked to estimate the noncash working capital needs for a new automobile fac- tory that Ford was constructing, would you use this ratio? Why or why not?
Expert Answer:
Answer rating: 100% (QA)
Answer a To estimate the net working capital we need to calculate the current assets and subtract the current liabilities Net Working Capital Current ... View the full answer
Related Book For
Posted Date:
Students also viewed these banking questions
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Due to the special capital market situation in China during the period 20072008, the authors voluntarily left this case un-updated. Youngor Group, founded in 1979, has grown over 30 years into a...
-
(a) A proton is moving at a speed much slower than the speed of light. It has kinetic energy K1 and momentum P1. If the momentum of the proton is doubled, so P2 = 2p1 how is its new kinetic energy K2...
-
Apply a PESTEL analysis. What impact will health care and biogenerics regulation have on Genentech? Why?
-
What minimum path length difference is needed to cause a phase shift of /4 in light of wavelength 700.nm?
-
What ethical problems should you be aware of in searching social medial sites?
-
The completed worksheet for CJs Accounting Services for the month ended December 31, 2016, appears on shown below. CJs Accounting Services Worksheet Month Ended December 31, 2016 INSTRUCTIONS 1....
-
Explain in details and provide an example from Chick fila a. A leader is someone who can influence and impact others to live up to certain standards and visions for organizations and even within...
-
1. Evaluate Theo's new strategy in light of the company's strengths, weaknesses, opportunities, and threats. 2. Using the BCG matrix, explain Theo's decision to offer a classic line of chocolate bars...
-
What is theCommon problems and solutions for Ventilator devices
-
Can employers maintain a certain look or image to their retails sales force and not violate EEOC REGULATION? Explain with example.
-
There are many companies that implemented online HRD programmes during the Covid-19 pandemic lockdown. Explain the advantages and disadvantages to the companies and employees if online HRD programmes...
-
Pharoah company reported net sales of $ 2 6 6 , 0 0 0 , cost of goods sold of $ 1 5 9 , 6 0 0 , operating expenses of $ 4 6 , 4 0 0 , net income of $ 4 2 , 5 6 0 , beginning total assets of $ 4 9 2 ,...
-
Explain with an example of a professional reference letter? The person is applying for a Substitute teacher position but worked in Juvenile courtroom for 5 years they maintained a great repour with...
-
Consider two different implementations, MI and M2, of the same instruction set. There are three classes of instructions (A, B, and C) in the instruction set. MI has a clock rate of 400 MHz, and M2...
-
Sunshine Day Care Inc.'s balance sheet indicates that it has current assets of $40,000, Capital Assets net of depreciation of $150,000, current liabilities of $23,000, long-term liabilities of...
-
a) Show that (a, b) := {{a}, {b}} does not satisfy the ordered pair axiom. b) Determine whether each of the following statements is true or false. (Give a reason in each case): (i) {a, b} C (a, b)....
-
The following quote was taken directly from the audit report written by Price water house Coopers on the 2014 financial statements of Kroger. In our opinion, the accompanying consolidated balance...
-
The main section headings of the income statement are a. Sales b. Service revenue c. Other revenue d. Cost of goods sold e. Operating expenses f. Other expenses REQUIRED: Classify the following...
-
Acme Inc. purchased machinery at the beginning of 2015 for $50,000. Management used the straight-line method to depreciate the cost for financial reporting purposes and the double-declining-balance...
-
In an \(x(t)\) curve, what is the significance of a steep slope as opposed to a gentle slope? What is the significance of a curve that slopes downward as you move from left to right along the time...
-
The \(x\) component of a car's velocity increases from 0 to \(+5.0 \mathrm{~m} / \mathrm{s}\) in \(1.0 \mathrm{~s}\), and then from \(+5.0 \mathrm{~m} / \mathrm{s}\) to \(+10 \mathrm{~m} /...
-
Describe how to determine the \(x\) component of the position of an object at a specific instant, given (a) a graph of position \(x\) as a function of time \(t\) and (b) an equation for \(x(t)\).
Study smarter with the SolutionInn App