Question

Ford Motor Company, one of the world’s largest automakers, reports the following income statement accounts for the year ended December 31, 2015 (\( in millions). Use this information to prepare Ford’s income statement for the year ended December 31, 2015.

Selling and administrative costs . . . . . . . . . . . . \) 14,999

Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,041

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149,558

Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . 3,145

Short answer

Net income is computed as revenues minus all the expenses and the net income of ford company is $7,373.

Step-by-step solution

Definition of net income  

The net income is defined as the income of the business organizations which computed after deducting all the expenses from the revenue generated.

Preparation of income statement

Ford Motor Company
Income Statement
Year ended for December 31, 2015
Particulars	Amount ($)	Amount ($)
Revenues		149,558
Cost of sales		-124,041
Gross profit		25,517
Expenses
Selling and administrative Costs	14,999
Other expenses	3,145
Total expenses		-18,144
Net Income		7,373