Review of the Cash Budget
Review the 2014 Statement of Cash Flow budget. Based on your research, write a report that indicates whether you believe the cash from operations will increase or decrease. In addition, predict the increase or decrease in cash from investing and financing activities. Identify specific accounts that are likely to increase or decrease and explain why you believe there will be differences from the prior year. Provide the basis for your conclusions in a memo to management. Include your references.
Review of the Balance Sheet
Review the 2014 balance sheet. Based on your research, include in your report whether or not you believe inventory, accounts receivable, and accounts payable will increase or decrease. Explain why. Predict whether long-term debt will increase or decrease. Also, predict whether Ford will increase, decrease, or maintain current dividends to shareholders as in the past year. Provide the basis for your conclusions. Include your references. Your analysis will be part of your final report.
Competitive Analysis and Benchmarking
Review the advantages of benchmarking. Ford competes with both domestic and foreign automobile companies. Review the annual reports of Toyota and Honda. Select three (3) key performance measures. At least one performance measure is a financial measure. Assess how Ford automotive performs compared to these two international companies. Consider whether or not Toyota and Honda use international accounting standards to prepare their financial statements. Determine if the data you used is comparable. Write a memo to management that (1) explaining how benchmarking assists management and (2) summarizes your analysis and conclusion. Include your assessment of whether or not the international financial statements you used allowed you to make meaningful comparisons. Identify the limitations.
Attachment:- Statement of Cash Flows - Balance Sheet.rar