How does ford initially value its debt

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Reference no: EM131457450

Case - Long-term liabilities

Download the 2015 financial statements for Ford Motor Company.

1. How does Ford initially value its debt on the balance sheet? How are the discounts, premiums, and costs directly related to the issuance of debt recognized?

2. What method does Ford use to calculate interest expense on its debt?

3. What is the total amount of debt appearing within current liabilities on the balance sheet at December 31, 2015? What does it include?

4. What is the total amount of debt due after one year appearing on the balance sheet at December 31, 2015? What does it include?

5. How does the interest rate in 2015 on the short-term debt compare to 2014?

6. What is the fair value of Ford's debt at December 31, 2015?

7. What was Ford's rent expense in 2015 related to Lease Commitments?

8. What are Ford's debt-to-equity ratios for 2014 and 2015?

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The said paper is in relation to the analysis of debt management of the company.Here we have defined the nature of the debt, both long and short term. The valuation method and the policy used by the company for valuation of debt is defined. The company's financial statement is observed for determining the fair value of debt of the company.

Reference no: EM131457450

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