An income report refers to a financial statement that provides an overview of the company's financial performance within a given financial year. It is also known as a revenue and expenses statement, whereas others refer to it as a profit and loss report. An income report summarizes the expenses and revenues incurred by the company ( Lin et al., 2018) . The income statement also highlights the corporation's total profit gain or losses over a given accounting phase. The main reason for having an income statement is to provide the decision-makers with the necessary information useful in assessing the company's condition and making changes where necessary. Therefore, an income statement provides the analysts with a view of the company's financial position regarding its debts and assets ( Drake et al., 2017) . Assets generally include possessions belonging to the company that have value, such as equipment, hard cash, cash at the bank, real estate, or any other property ( Lin et al., 2018) . Liabilities are what the company owes outside. Examples include bank loans, taxes, debts belonging to suppliers, and accrued payroll ( Lin et al., 2018) . Often, banks and creditors rely on income statements when deciding whether a loan can be extended to the company. Similarly, investors rely on the company's financial position to decide whether it is a good or bad investment opportunity. Most importantly, an income statement indicates how the resources that have been contributed by shareholders and lenders have been utilized, as well as the company's current financial standing.
Based on the report, Ford Motors Company had a total asset value of at least 190 billion dollars, total liabilities value of at least 174 billion dollars, which brings the net worth of the company to at least 16 billion dollars. In terms of the current ratio, which involves dividing the current assets by current liabilities, Ford Motors has a high current ratio of 6.48, which implies that the company is in a position to meet its short term obligation easily ( Gibson, 2012) . Nevertheless, the ration indicates that money is not being utilized optimally. Taking a look at Ford Motor company’s 2012 income statement, the first noticeable statistic is that Ford's revenues depreciated compared to the previous accounting period. Nonetheless, the drop in revenues was not major, with the figure standing at a little over 1%. In both the company's financial services and automotive sales, the lower revenues were equally down. Moreover, one cannot help but notice the costs and expenses ( Enkhbayar, 2018) . Indeed, the automotive sales went down just as much as the revenues percentages for 2012. Nonetheless, other areas, such as sales and administrative expenses, slightly went up. Even so, Ford experienced an upside-down regarding the financial service provider for credit and auto insurance losses. Therefore, this statistic calls for further evaluation of the complete financial report since Ford Company had credit balances in two previous reporting periods. Furthermore, the overall net income of Ford Company appears to have depreciated significantly in 2012 in comparison to the previous reporting period ( Enkhbayar, 2018) . After taking a look at note 24, in the previous reporting period, it is worth noting that Ford Company took an eleven and a half billion in deferred tax credit which is the major reason as to why the net income of the company seems to have gone down significantly in comparison to the previous reporting period. Regardless of the depreciation, in 2012, Ford Company turned in a profit on five and a half-billion dollars.
Delegate your assignment to our experts and they will do the rest.
References
Drake, M. S., Quinn, P. J., & Thornock, J. R. (2017). Who uses financial statements? A demographic analysis of financial statement downloads from EDGAR. Accounting Horizons , 31 (3), 55-68.
Enkhbayar, A. (2018). Ford Motor Company's Financial Analysis.
Gibson, C. H. (2012). Financial reporting and analysis . Nelson Education.
Lin, S., Martinez, D., Wang, C., & Yang, Y. W. (2018). Is other comprehensive income reported in the income statement more value relevant? The role of financial statement presentation. Journal of Accounting, Auditing & Finance , 33 (4), 624-646.
