Question

The consolidated statement of income for Ford Motor Company appears at the top of the following page.
1. What is the first thing 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 the Automotive division does not report depreciation expense.
5. Which of the company’s two divisions seems to be performing better over time?
6. Is Ford a car company that finances automobiles or a finance company that makescars?


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  • CreatedApril 07, 2012
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