Selected balance sheet and income statement information from Ford motor Company and its two principal business segments, Automotive and financial services for 2016 follows:

 

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Total Interest Expense Pretax Not Income Liabilities Equity $ millions Income Automotive Financial services $9,422 $ 894 $6,313 $ 79,631 $17,298 1,820 2,808 1,315 134,317 11,935 (4,446) 3,021) (5,280) 50 Other. Ford Motor, Consolidated. $6,796 $3,702 S4,607 $208,668 $29,283 a.Compute return on equity (ROE), times interest earned ratio and total labilities-to-equity for the com- pany's two business segments and the company as a whole (Use year-end equity for return on equity calculation 6.What is your overall assessment of the company's credit risk" Explain What differences do you ob- serve between the two business segments" Do these diflerences correspond to your prior expectations given each company's business model? cDiscuss the implications of the analy sis of consolidated financial statements and the additional insight that can be gained from a more in-depth analysis of primary business segments Required Total Interest Expense Pretax Not Income Liabilities Equity $ millions Income Automotive Financial services $9,422 $ 894 $6,313 $ 79,631 $17,298 1,820 2,808 1,315 134,317 11,935 (4,446) 3,021) (5,280) 50 Other. Ford Motor, Consolidated. $6,796 $3,702 S4,607 $208,668 $29,283 a.Compute return on equity (ROE), times interest earned ratio and total labilities-to-equity for the com- pany's two business segments and the company as a whole (Use year-end equity for return on equity calculation 6.What is your overall assessment of the company's credit risk" Explain What differences do you ob- serve between the two business segments" Do these diflerences correspond to your prior expectations given each company's business model? cDiscuss the implications of the analy sis of consolidated financial statements and the additional insight that can be gained from a more in-depth analysis of primary business segments Required

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Return on equity is computed as net income divided by the amount of shareholders equity It is a meas... View the full answer