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