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The following is the balance sheet for Ford Motor Company as of December 31, 1994...

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Accounting

The following is the balance sheet for Ford Motor Company as of December 31, 1994 (in millions). Assets Liabilities Cash $ 19,927 Accounts payable $ 11,635 Receivables $132,904 Debt due within 1 year $ 36,240 Inventory $ 10,128 Other current liabilities $ 2,721 Current assets $ 91,524 Current liabilities $ 50,596 Fixed assets $ 45,586 Short-term debt $ 36,200 Long-term debt $ 37,490 Equity $ 12,824 Total assets $137,110 Total liabilities $137,110 The firm had revenues of $154,951 million in 1994 and cost of goods sold of $103,817 million. a. Estimate the net working capital. b. Estimate the noncash working capital. c. Estimate noncash working capital as a percent of revenues. 5. Continuing problem 4, assume that you expect Ford's revenues to grow 10% a year for the next five years. a. Estimate the expected changes in noncash working capital each year, assum- ing that noncash working capital as a percent of revenues remains at 1994 levels. b. Estimate the expected changes in noncash working capital each year, assum- ing that noncash working capital as a percent of revenues will converge on the industry average of 4.3% of revenues.

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