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Corporate Finance Essay

2709 words - 11 pages

FINC 620
Corporate Finance
Final Project

FIN 620

Table of Contents
I.                   An overview of the corporation
II.                The latest financial statement
III.             A summary of each financial statement
IV.             Ratio calculation
V.             Is the corporation’s stock a good buy or sell?
VI.          Other information pertinent to the corporation that could affect its future performance and stock price
VII.       Recommendation regarding the future of the corporation
 

I. Overview of Corporation
For our final project I chose to study the automotive company Ford Motor company and to analyze their financials from 2006-2010 which was right ...view middle of the document...

The man leading Ford is Alan automaker was on the brink of bankruptcy. The company was preparing to post the biggest annual loss in its 103-year history—$12.7 billion. Seven years later, Mulally is widely seen as the man behind one of the most impressive corporate turnarounds in history. Ford has posted an annual profit every year since 2009, its stock price has rebounded, and a new corporate culture has transformed the way the organization works” (Kirkland,2013). “Ford Motor Company manufactures or distributes automobiles across six continents. Ford employees around 224,000 employees and about 90 plants worldwide, the company’s brands include Ford, Lincoln and Ford Motor Credit Company” (Inside). These plants operate and sell vehicles in countries such as Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, India, Japan, Mexico, Romania, Russia, Slovakia, South Africa, Spain, Taiwan, Thailand, Turkey, United Kingdom, United States, Venezuela and Vietnam.
II. Latest Financial Statements
With this background below are listed the most recent financial statements and you can see in a short amount of time the improvements and strong financial for the next three years. Below are the balance sheet, cash flow statement and statement of owner’s equity.
Income Statement
Period Ending | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 |
Total Revenue | 146,917,000   | 133,559,000   | 135,605,000   |
Cost of Revenue | 128,094,000   | 116,107,000   | 117,225,000   |
|
Gross Profit | 18,823,000   | 17,452,000   | 18,380,000   |
|
| Operating Expenses |
| Research Development | -   | -   | -   |
| Selling General and Administrative | 13,176,000   | 11,494,000   | 10,884,000   |
| Non Recurring | 208,000   | 77,000   | (36,000) |
| Others | -   | -   | -   |
| |
| Total Operating Expenses | -   | -   | -   | |
| |
| |
Operating Income or Loss | 5,439,000   | 5,881,000   | 7,532,000   | |
| |
| Income from Continuing Operations | |
| Total Other Income/Expenses Net | 1,322,000   | 1,964,000   | 1,466,000   | |
| Earnings Before Interest And Taxes | 7,830,000   | 8,433,000   | 9,498,000   | |
| Interest Expense | 829,000   | 713,000   | 817,000   | |
| Income Before Tax | 7,001,000   | 7,720,000   | 8,681,000   | |
| Income Tax Expense | (147,000) | 2,056,000   | (11,541,000) | |
| Minority Interest | 7,000   | 1,000   | (9,000) | |
| |
| Net Income From Continuing Ops | 8,224,000   | 6,253,000   | 20,713,000   | |
| |
| Non-recurring Events | |
| Discontinued Operations | -   | -   | -   | |
| Extraordinary Items | -   | -   | -   | |
| Effect Of Accounting Changes | -   | -   | -   | |
| Other Items | -   | -   | -   | |
| |
| |
Net Income | 7,155,000   | 5,665,000   | 20,213,000   | |
Preferred Stock And Other Adjustments | -   | -   | -   | |
| |
Net Income Applicable To Common Shares | 7,155,000   |...

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