Acompany that is traded publicly heightens the dispersal of ownershipamong the general public in the form of shares through an IPO andsubsequently the shares are traded freely on the stock exchange orthe counter markets. The paper assesses the financials for Ford MotorCompany which went public in 1956. The company stock is traded onNYSE under the initials F and is also an S&P 500 Component.
Commonstock represents a security that signifies ownership of anenterprise. Owners of the common stock are rewarded through returnsfrom the dividend paid by the company. Ford Motor Company has thecommon stock which is traded on the NYSE and the Class B stock whichhas no quoted market. The difference between these two stocks is thatthe common stock has 60% of the voting power at the general meetingof stockholders while Class B stock owners are entitled to theremaining 40% (Weygandt, Kimmel & Kieso, 2015). Both stocks shareequal dividends when they are paid. Ford Motor Company as at the endof FY2015 had an outstanding 3960 million of common stock shares and71 million of Class B stock. The par value of the two stocks is $0.01per share. The total values for the stocks as per the balance sheetfor FY 2015 was $40 million for the common stock and $1 million forClass B Stock.
Preferredstock encompasses a class of ownership of an enterprise that has aclaim which is higher for assets and earnings than common stock. Asarticulated in the balance sheet for FY 2015 report, Ford Motor hasnot issued the preferred stock.
Treasurystock encapsulates the portion of shares the enterprise buy backhence reducing the stock outstanding in the open market. Ford Motorfor FY 2015 financial report had treasury stock worth $977 million.
UnusualItem in the Balance Sheet
Thebalance sheet for Ford Motor in FY 2015 does not have an unusual itembecause the balance sheet is prepared and presented under theguidance of GAAP.
Weygandt,J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial& Managerial Accounting.John Wiley & Sons.