Ford Motor Company


GROUP PROJECT
ACC 505 - FINANCIAL ACCOUNTING 12/01/96
TABLE OF CONTENTS

DESCRIPTION PAGE

INTRODUCTION........................................................1

LIQUIDITY...........................................................1-3
Working Capital...................................................1
Current Ratio & Quick Ratio.......................................2
Receivable Turnover & Average Days' Sales Uncollected.............2-3
Inventory Turnover & Average Days' Inventory on Hand..............3

PROFITABILITY.......................................................3-7
Profit ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

automotive corporation, strives for
success each and every year. The success of Ford Motor Company, as well as
other corporations, can be measured by analyzing the two most important goals of
management, maintaining adequate liquidity and achieving satisfactory
profitability. Liquidity can be defined as having enough money on hand to pay
bills when they are due and to take care of unexpected needs for cash, while
profitability refers to the ability of business to earn a satisfactory income.
To enable investors and creditors to analyze these goals, Ford Motor Company
distributes annual financial statements. With these financial statements,
liquidity of Ford Motor Company is measured by analyzing factors such as working
capitol, current ratio, quick ratio, receivable turnover, average days' sales
uncollected, inventory turnover and average days' inventory on hand; whereas
profitability analyzes the profit margin, asset turnover, return on assets, debt
to equity, and return on ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.


Already a member? Login

the current ratio and quick ratio.

Receivable Turnover & Average Days' Sales Uncollected

An examination of trends in Ford Motor Company's receivable turnover and average
days' sales uncollected ratios reveal positive indicators of Ford's liquidity
position. The receivable turnover, a function of net sales and average accounts
receivable, has nearly doubled in the years 1993-1995 versus 1991-1992. This
trend indicates an extensive increase of net sales in relation to accounts
receivable. Receivables were relatively higher in 1994 than in any other of the
five years, affecting the ratio for both 1994 and 1995. However, net sales
increased 30% in 1994 and 34% in 1995 over the average ...

Succeed in your coursework without stepping into a library.
Get access to a growing library of notes, book reports,
and research papers in 2 minutes or less.


CITE THIS PAGE:

Ford Motor Company. (2004, February 13). Retrieved November 17, 2018, from http://www.essayworld.com/essays/Ford-Motor-Company/2979
"Ford Motor Company." Essayworld.com. Essayworld.com, 13 Feb. 2004. Web. 17 Nov. 2018. <http://www.essayworld.com/essays/Ford-Motor-Company/2979>
"Ford Motor Company." Essayworld.com. February 13, 2004. Accessed November 17, 2018. http://www.essayworld.com/essays/Ford-Motor-Company/2979.
"Ford Motor Company." Essayworld.com. February 13, 2004. Accessed November 17, 2018. http://www.essayworld.com/essays/Ford-Motor-Company/2979.
JOIN NOW
Join today and get instant access to this and 50,000+ other essays


PAPER DETAILS
Added: 2/13/2004 12:54:24 AM
Category: Economics
Type: Free Paper
Words: 2076
Pages: 8

Save | Report

SHARE THIS PAPER

SAVED ESSAYS
Save and find your favorite essays easier

SIMILAR ESSAYS
Ford Motor Company
Evolution Of Ford Motor Company
History Of The Automotive Indus...
Ford Motor Company: Rages To Ri...
Ford Car Company
Ford Car Company
Ford, The Company And The Man
Henry Ford: A Life In Brief
Henry Ford
Situation Analysis: Ford Mustan...
Copyright | Cancel | Contact Us

Copyright © 2018 Essayworld. All rights reserved