PROJECT PAPER

For this Project Paper, please use the following resources:
(1) Internet or other resources including the library; (2) The Annual Report for your company which can be located on the internet. (For a sample of what financials look like, see Appendix C in the back of the textbook, starting on page C-1. Nike, Inc. financials are shown there).
The requirements for this assignment are listed below:
Acquire a copy of your company’s most recent Annual Report, and other information about the company’s history, etc., for this assignment by using the Internet or other resources. You will need the Balance Sheet, Income Statement, and Statement of Cash Flows.
Prepare a 750- to 1,000-word written Executive Summary Report, using the information contained in the company’s balance sheet and income statement, the Internet or other resources, answering the following questions. (Note: The annual reporting period and fiscal year mean year-end numbers).
Please make sure your written paper includes answers to the following questions:
1. Company history: When was the company founded? By whom? List other historical facts.
2. Who is the audit firm for the company?
3. What stock exchange is the company listed on? What is their ticker symbol?
4. How much cash and cash equivalents did the company have at the end of its 2 most recent annual reporting periods?
5. What were the company’s total current assets at the end of its 2 most recent annual reporting periods?
6. What were the two largest current assets at the end of its 2 most recent annual reporting periods?
7. What were the company’s total assets at the end of its 2 most recent annual reporting periods?
8. What amount of accounts payable did the company have at the end of its 2 most recent annual reporting periods?
9. What were the company’s total current liabilities at the end of its 2 most recent annual reporting periods?
10. What were the company’s total liabilities and shareholders’ equity at the end of its 2 most recent annual reporting periods?
11. What were the company’s revenues (or net revenues) for the last 2 annual reporting periods?
12. Besides reporting numbers you need to provide some analysis such as increase decrease, percentage change, or any ratios you might find useful to explain changes in the financials of the company you chose.

ANSWER

Ford Motor Company

Ford Motor Company is an American automotive corporation founded in 1903 by one Henry Ford and 11 associates. The company has undergone several incorporations since then; Ford, his wife (Clara), and son (Edsel) reincorporated the company, thereby acquiring full ownership. Together with their heirs, those mentioned above formed the Ford Foundation in 1936 and became the company’s primary stockholders until January 1956; this is when the company first availed the common stock for public sale. Ford Motor Company deals with the production and servicing of passenger cars, tractors, trucks, and various automotive parts and accessories. The subject company’s headquarters are in Dearborn, Michigan. The company had its first experimental car manufactured in 1896; they then assembled their first Ford car in the Mack Avenue plant in July 1903. The known audit firm in charge of Ford is PricewaterhouseCoopers LLP. The company had its first global sales branch opened in Paris, 1908.

Since its founding days include Edsel, Merkur, and Mercury (rendered defunct), it has also owned Mazda, Landrover, Jaguar, and Volvo (all sold in recent years). The active known operating car brands are Ford, Troller, and Lincoln brands. Ford Motor Company is listed on the New York and Pacific Stock Exchanges in the USA; Ford is under the Consumer Discretionary stock sector with a NYSE:F ticker symbol. The company recorded a quarterly decline in cash and equivalents from June 2020 ($30,989.00 Million) to September 2020 ($24,263.00 Million), it then recorded an increase from September 2020 ($24 263.00 Million) to December 2020 ($25,243.00 Million). The company’s annual cash and cash equivalents increased from December 2018 ($16.72 Billion) to December 2019 ($17.5 Billion); it then increased from December 2019 ($17.5 Billion) to December 2020 ($24.72 Billion). Ford’s total assets as of the 2019 closing period were $258.537 Billion marking an increase of 0.78% from the previous year; the company also registered total assets of $267.261 Billion at the end of the 2020 closing period, thereby marking an increase of 3.37% from the previous year. At the end of both the 2019 and 2020 periods, the largest-selling asset was the Ford F-Series truck; the company sold over 1 million units of the subject investment.

The company recorded total current assets of $114.05 Billion and $116.74 Billion in 2019 and 2020 respectively. Ford Motor Company has been making some tremendous financial progress since 2017, only recording a decline in 2019; the company’s annual payable current account at the end of 2019 closing period was $5,260 Million and later increased to $6 809 Million at the end of 2020 period. Having registered current assets, the company also did register current liabilities at the end of both the 2019 and 2020 periods. The company’s annual current liabilities at the end of the 2019 closing period was $98,132 Million; it later recorded a decrease in its current annual liabilities in 2020 to $97,192 Million. Ford Motor Company has four operative segments representing its primary business; Automotive, Ford Smart Mobility, Central Treasury Operations, and Financial Services segments are the key pillars to its business. Despite Ford being the largest automotive company in the USA, it also incurs debts and business operations. In 2020, the company reported debt estimates ranging between 161 and 162 U.S dollars; the recorded debt includes both credit debt and automotive debts.

Ford Motor Company registered total annual liabilities of $225.31Billion in 2019, which decreased from 2018; it later registered a total yearly liabilities of $236.45 Billion in 2020. The company also recorded an annual total of shareholder’s equity of $33.19 Billion in 2019 and later decreased to $30.69 Billion in 2020. The total yearly liabilities and shareholder’s equity in 2019 were $258.54 Billion and later increased to 267.26 Billion in 2020. Despite the various business and market challenges resulting from debts and liabilities in the company, Ford could still record mouth-watering annual revenue of $155.9 Billion in 2019 (a decrease of 2.77% from 2018). The company later registered $127.144 Billion in 2020, which was a significant decrease of 18.45% from the year 2019. The collected revenues are typically the company’s money from its clients and customers in exchange for its goods and services.

Statistical research and financial reports show that Ford Motor Company has been on a downward trend financially in recent years, the latest being a recorded $ 1.3 Billion loss in 2020. The loss in revenue in the year 2020 was primarily contributed by the outbreak of the Covid-19 pandemic hence the loss. The revenue decline was significantly contributed by the disappointing sales and expenses precisely contributed by Ford’s Mobility segment. Statistical data also shows that the vehicle wholesales recorded a decrease from 6.6 Million to approximately 4.2 Million units between 2017 and 2020; a significant sale decrease was recorded in South America, where the company sold an average of 185,000 vehicles, registering a reduction of 40%. Despite all the difficulties in demand and revenue earnings, Ford Motor Company managed to stay above the red line in 2020, thereby sparkling some hopes in 2021.