Question: View the 2015 Annual Report for the Ford

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Question:

View the 2015 Annual Report for the Ford Motor Company (download the PDF of the Annual Form 10-K report from the website), a Fortune 50 company. Using this report, answer the following questions: #34 What were the total debt and debt components at the end of 2015? #33 Do you think that the company has additional “intangibles” that are not recorded on the balance sheet? Why? How would this issue affect your understanding of the company’s financial performance? #31 What was the total amount of intangible assets that the company reported at the end of 2015, and how did the company capitalize and amortize the different intangible assets? #24 What were the reinvested (retained) earnings on December 31, 2015? Work has to be shown for #34.

http://corporate.ford.com/content/dam/corporate/en/investors/reports-and-filings/Annual%20Reports/2015-Annual-Report.pdf

Answer:

#34 What were the total debt and debt components at the end of 2015?

Ans:

Automotive debt (Note 13)                                                                       $ 12,839

Financial Services debt (Note 13)                                                            $ 120,015

Debt variable interest entities (“VIEs”)                                                 $ 43,086

Automotive                                                                                                       

Long-term debt                                                                                              $ 11,060

Debt payable within one year                                                                  $    1,779

Total                                                                                                                    $ 12,839

Financial Services                                                                                         

Long-term debt                                                                                              $ 120,015

Fair value of Automotive sector debt                                                   $ 14,199

Fair value of Financial Services sector debt                                       $ 121,170

#33 Do you think that the company has additional “intangibles” that are not recorded on the balance sheet? Why? How would this issue affect your understanding of the company’s financial performance?

Ans:

Intangible assets are comprised primarily of license and advertising agreementsland rightspatentscustomer contracts, and technology. Other intangibles as primarily customer contracts are not included in the intangible.

#31 What was the total amount of intangible assets that the company reported at the end of 2015, and how did the company capitalize and amortize the different intangible assets?

Ans:

The net carrying amount of the company’s intangible assets was $124 million at December 31, 2015 and are reported in other assets on our balance sheet. The company’s indefinite-lived intangibles were tested for impairment in 2015 and no impairment was required.

The company capitalize and amortize our finite-lived intangible assets over their estimated useful lives. Indefinite-lived intangible assets are not amortized, but are tested for impairment annually or more frequently if events or circumstances indicate the assets may be impaired.

#24 What were the reinvested (retained) earnings on December 31, 2015?

Ans:

Retained earnings of $5 billion related to full year 2015.

 

1 review for Question: View the 2015 Annual Report for the Ford

  1. Steven_itern

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