Ford Motor Company Income Statement

Ford Motor Company SEC 10-K Report
Larry Moreno
University of Maryland University College
ACCT311
Professor Victoria John Introduction
Company Introduction
Ford Motor Company is an American automaker that was incorporated in 1903 by Henry Ford. Currently, Ford is the 5th largest automaker in the world, and are based out of Dearborn Michigan. Ford employs approximately 201,000 employees working in 62 plants across the globe. To expand their business model, they are always trying aggressively to pursue emerging opportunities with investments in electrification, autonomy, and mobility. They also provide financial services through Ford Motor Credit Company LLC. Ford Credit offers credit to consumers and dealerships through loans and leases

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Income Statement
Fords income statement classifies their Automotive segment total costs and expenses into two categories 1) cost of sales and 2) selling, administrative, and other expenses. They include within cost of sales those costs related to the development, manufacture, and distribution of their vehicles, parts, and accessories. They also include within selling, administrative, and other expenses labor and other costs not directly related to the development and manufacture of our products, including such expenses as advertising and sales promotion costs. Ford’s income statement states that they had total revenues of $151,800 million in 2016, compared with 149,558 million in 2015. This is an increase of 2,242 million from 2015 to 2016. The automotive section increased $980 million and the financial services segment increased $1,261 million. Ford had a gross profit of $25,216 million in 2016 compared with gross profit of $25,517 million in 2015. Fords total current liabilities in 2016 include Payables, Other liabilities and deferred revenue, automotive debt

Their full year 2016 adjusted effective tax rate, which excludes special items, was 31.9%. Net income before taxes was 6,796 and net income after taxes was 4,607. On April 1, 2016, they retrospectively adopted the new accounting standard which requires deferred tax assets and liabilities to be classified as non-current in the consolidated balance sheet. The impact of the change resulted in the classification of all deferred taxes as non-current.