Reference no: EM13879472

Annual Report

You are required to analyze the most recent fiscal year. If you need to search for additional information about the company, then access the company's website. Look for ‘Company Info', ‘About Us' or ‘Investor Relations' on the main page, and search through until you see ‘Annual Reports' or ‘ Financial Reports''.

The project requirements are listed below. They consists of a series of questions that you need to answer based on the information disclosed in the annual report of the company.

Companies:

2. Ford: https://corporate.ford.com/investors/reports-­-and-­-filings/annual-­-reports.html#/undefined (2014 annual report)

Requirement of the project:

Important: For each answer, indicate the page number(s) of the annual report where you found the information. Be sure to include with your submission a copy of the annual report section that you used in your answers and highlight the numbers and other information that you have used. Do not submit copies of the entire annual report. Think about the environment before you print pages or documents you may not need.

Please show all your calculations.

Required questions:

Part 1

1.1Provide a brief description of the company, and indicate the type of products it sells and or the services it provides.

1.2On what day of the year does its fiscal year end?

1.3For how many years does the company present a) balance sheet, b) income statement, and c) statement of cash flows in its most recent annual report

1.4Are the financial statements audited by independent auditors? If so, by whom?

1.5Did the company's net income increase or decrease over the last year and by how much?

1.6Write the company's accounting equation at the end of its current financial year.

Part 2

2.1 For the most recent year, what are the top three asset accounts by size? What percentage is each of total assets? (Computed as asset A/Total assets)

2.2 What are the major investing and financing activities (by dollar size) for the most recent year? (Look at the statement of cash flow)

Part 3

3.1 Describe the company's revenue recognition policy. (Usually found in notes to the financial statements )

3.2 For the most recent year, what is/are the major sources of revenue account for this company? What percentage is each to total revenue? You may refer to the company's financial statements where companies may identify different sources of revenue.

3.3 For the most recent year, what is/are the major expense account(s)? What percentage is each to total expenses?

Part 4

4.1 List the accounts and amount of accrued expenses payable on the balance sheet of the most recent year. You may find the detail in the notes to the statements.

4.2 What is the ratio of the total accrued expenses payable to total current liabilities?

Part 5

5.1 In the most recent year, what portion of the cash flow from operations was paid to shareholders in the form of dividends?

5.2 which of the two basic reporting approaches for cash flows from operating activities did the company adopt?

Part 6

6.1 Does the company use a single step or multiple step format for its income statement (statement of comprehensive income)? Explain.

6.2. Does the company use a classified balance sheet? Explain

6.3 If the company lists receivables, determine what additional disclosure is available concerning allowance for doubtful accounts?

6.4 What inventory costing method does the company use?

Part 7

7.1 For the most recent year, list the accounts and carrying amounts of the company's property, plant and equipment, and intangible assets? What is the percentage of each to total assets?

7.2 What depreciation method(s) and estimates (useful lives or depreciation rates) does the company use for each type of long term assets?

7.3 Did the company sell any long-­-lived assets? If so, how much cash did the company receive for selling these assets?

Part 8

8.1 List the accounts and amounts of the company's current liabilities for each of the last two years.

a. What is the percentage of each to the perspective years' total liabilities?

b. What do the results of your analysis suggest about the strategy your company has followed with respect to borrowed funds for the past year?