Sheet Ford Motor Company

Balance Sheet Ford Motor Company

The balance sheet is a snapshot of Ford Motor Company's financial position on a particular date (Epstein, 2014). Ford Motors Company balance sheet shows a summary of the company's assets what they own and the debt that they have. Ford Motors Company balance sheet gives the stockholders their equity after the company deduct their liabilities from their assets. The balance sheet gives a company a bigger picture of their financial position of what they own and owes.

The balance sheet keeps records of capital that is invested into the company. It shows liabilities and shareholders' equity. Shareholders at Ford Motors will own whatever assets are left over after subtracting the liabilities. Ford Motors Company regards their customers and prospects as their most important stakeholders, since their actions have a direct impact on their revenue and profits. However, there are other stakeholders as well staff (the 'internal stakeholders'), and a variety of 'external stakeholders (Suntook & Murphy, 2010).

Any deviation can throw a company's book off balance. Since balance is based on the key equation for all accounting: Assets = Liabilities + Equity (Epstein, 2014). The balance sheet has to be aligned and balanced to show shareholders their claim on Ford Motors Company assets. The balance sheet will give Ford Motors an overall view of their ability or in some cases the inability to meet their financial obligations for the year. The purpose of the balance is to evaluate Ford Motors Company current situation and make changes if needed.

Creditors use the balance sheet to make a decision on loans it might make to the company. Stock investors use the balance sheet to determine whether the company represents a good investment (Reeves, 2014). Ford Motors Company balance sheet shows a significant change in 2012. The consolidated balance sheet shows how Ford Motors has made some improvements in 2012. Their total asset for 2012 $190,554 up from 2011's $178,348 (Your Ford, 2014). Total liabilities and equity increased in 2012 $190,554 from 2011 $178,348. The balance sheet show how Ford Motors Company debt decrease in 2012 in 2011 the debt was at $41,412 and in 2012 $40,245. Total Automotive Assets increase from 2011 $78,786 to $86,458 in 2012 (Your Ford, 2014).

Total asset $192,366 increased in 2012 from 2011's $179,248. Total Automotive Liabilities increased in 2012 to $79,161 from 2011's $72,051. Ford Motors company total liabilities in 2112 was $176,055 and in 2011 it was $164,177. Fords Motors total liabilities and equity increased from 2011$179,248 to $192,366 in 2012 (Your Ford, 2014). They had less debt in 2012 which is good, but they had less cash net of automotive debt. Ford Motors company shareholder value, dividends paid per share decreased in 2012. Total shareholder returns were were not good in 2012 (Your Ford, 2014). Although Ford Motors Company did make some improvements