Financial Decision Making Financial Statement Analysis

The financial statement analysis is due in Week Six. To help you begin your preparation of this work, select a company that you will do the analysis of. Write at least a 200 word summary identifying the firm that you selected, summarizing why you selected it, and explaining the items that a financial analyst might find useful within its Annual Report.

Additionally, read the Forbes article: “12 Lessons from the Warby Parkers Annual Report (Links to an external site.)” and explain which of these 12 lessons may apply to your company selection.

10-K Ford Motor Company
Review Ford Motor Company’s Form 10-K (Links to an external site.) for 2012. Explain the purpose of a company’s 10-K and how it interprets the firm’s financial strength. Write a description of three important items, including their significance to stakeholders, that you learned from reading Ford Motors Company’s 10-K for 2012.

Your paper must be two to three pages in length (not including the title and reference pages) and formatted according to APA style as outlined in the Writing Center. It must include citations and references for the text and at least two scholarly sources from the University of Arizona Global Campus Library.

About Form 10-K

Unlike the annual report, which is often colorfully printed on glossy paper, Form 10-K is plain and strictly standardized. It includes information on company history, structure, directors’ salaries, subsidiaries, and standardized financial statements. Companies with more than $10 million in assets and more than 2,000 shareholders, whether they are public companies or not, must file a Form 10-K report. All Form 10-K reports are searchable through the SEC’s EDGAR database.

The Form 10-K must be filed with the U.S. Securities and Exchange Commission (SEC) by listed U.S. companies after the end of a fiscal year. Due to the disclosure of all company-related information, the Form 10-K is considered the most important document for investors.

Both the structure and the required information content are prescribed by the SEC. In particular, the report must contain a detailed description of the company and its business activities, a discussion of company-related risk factors, a summary of all legal issues, and a detailed statement of the company’s financial and operational position.

The Form 10-K contains all information about a U.S. company that is relevant to providers of debt and equity capital. The document is prepared after the end of a fiscal year and must be received by the U.S. Securities and Exchange Commission (SEC) within a prescribed filing period.

The 10-K, as the form is known in short form, includes far more details than the conventional annual report. In particular, the document contains a detailed description of the company and its business activities, the associated risks and legal issues, and a detailed statement of operating and financial results. Furthermore, in a letter to shareholders, management comments on the results and development of the individual business areas.

With the 10-K, U.S. companies fulfill their disclosure obligations to investors. The document is intended to provide insights into the company’s operating performance and financial position. In simple terms, the 10-K reports on how “healthy” a company is.