4. What could explain the changes from one year to another for each account selected in question number 3 (question and answer located below)? Your answer explains the why it changed, not how much it changed. Your reasons must be supported by data provided in the companys annual report.

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2.

3.

3. What are the accounts (not totals, but accounts i.e. net income is a total, wage expense is an account) that catch your attention compared to the previous year's income statement? List at least 3 and briefly explain why you selected each one. (Total Expenses or Net Income are not accounts, they are totals or labels for totals.) Explanation must say more than the figure increased or decreased, why would that be of interest?

1. Depreciation & Amortization Expense- It can be noticed that the Depreciation and Amortization Expense fell from 2020 by $1,497,000,000. Out of this change, the serious chunk is contributed by Depreciation itself which fell from $8,751,000,000 to $7,318,000,000. Amortization maintained a similar level. This sudden drop in Depreciation might indicate Ford Motors selling off a chunk of its fixed depreciable assets. These disposals may be due to winding up of factories from a specific location, or maybe selling due to technological obsolescence or maybe the assets reaching the end of their useful life.

2. Non-Operating Income- Non Operating Income has seen a serious jump of $15,188,000,000. As discussed above, this income may be a result of selling off a chunk of Ford Motor's fixed assets held that contributed to recovery of some residual value for the assets or maybe income from several other non-operating sources.

3. Total Revenue and Cost of Revenue- It can be noticed that Ford managed to increase their revenue from $127,144,000,000 to $136,341,000,000. Yet, they have managed to bring down the Cost of Revenue from $121,359,000,000 to $119,903,000,000, almost a $1,500,000,000 difference. This may be due to some technological breakthrough through Ford's regular investments in Research and Development or lower production costs due to changed suppliers.