Homework help

Homework Assistance Needed
I’m looking for help to determine the following for Ford Motor Company (F):

  • Total amount
  • Inventory costing method
  • Inventory valuation

Specifically, I need information on:

  • Accounts Receivable
  • Notes Receivable
  • Allowance for Doubtful Accounts
  • Accounts Receivable Turnover
  • Days Sales Outstanding

Any guidance or resources would be greatly appreciated!

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One response

  1. To assist you with your request for information about Ford Motor Company’s (F) accounts receivables and related metrics, I can provide an overview of how to approach the analysis and calculations:

    1. Amount Calculation

    To find the specific amounts for Accounts Receivable, Notes Receivable, and Allowance for Doubtful Accounts, you would typically refer to Ford’s most recent financial statements, which are available in their quarterly or annual reports (10-Q or 10-K filings). Look specifically at the balance sheet.

    2. Inventory Costing Method

    Ford Motor Company uses various inventory costing methods, including FIFO (First-In, First-Out) or LIFO (Last-In, First-Out), depending on their Accounting policy. This can also be found in the financial statement notes. Generally, automotive companies often use FIFO, but verify it in their disclosures.

    3. Inventory Value

    This value can also be found on the balance sheet. Look for the line item titled “Inventory,” which gives the total inventory at the end of the reporting period.

    4. Accounts Receivable Turnover

    The accounts receivable turnover ratio measures how efficiently a company collects its receivables. It’s calculated as:

    [
    \text{Accounts Receivable Turnover} = \frac{\text{Net Credit Sales}}{\text{Average Accounts Receivable}}
    ]

    • Net Credit Sales can often be found in the income statement.
    • Average Accounts Receivable can be calculated by taking the sum of the beginning and ending accounts receivable balances and dividing by 2.

    5. Days Sales Outstanding (DSO)

    DSO indicates the average number of days it takes for a company to collect payment after a sale. It can be calculated using the formula:

    [
    \text{DSO} = \frac{365}{\text{Accounts Receivable Turnover}}
    ]

    Example Calculation Steps

    1. Access financial reports for the specific amounts listed.
    2. Determine net credit sales from the income statement or annual report.
    3. Calculate average accounts receivable using the values from the balance sheet.
    4. Calculate turnover ratio with the values obtained.
    5. Finally, calculate DSO if you have the turnover ratio.

    If you can provide specific figures or access to Ford’s latest financial data, I can help you calculate these metrics more precisely.

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