Ford Motor Company submits an 8-K document to the SEC whichincludes Ford’s outlook for certain metrics. In the data given, wesee the document for the 3rd quarter 2019 date October 23. We weregiven Ford’s outlook for the year ended December 31, 2019. Thedocument that follows, dated February 23 was the actual metrics forthe year ended December 31, 2019. Using this information, answerthe following questions. 1. At October 23, 2019, Ford forecasted(budgeted) that its adjusted free cash flow for the year would growover the prior year. Looking at the results dated February 23, didFord meet that forecast? Is this a favorable or unfavorablevariance? 2. At October 23, 2019, Ford forecasted (budgeted) thatits adjusted EBIT (earnings before income tax) would be between$6.5 - $7.0 billion. Looking at the results dated February 23, didFord meet that forecast? Is this a favorable or unfavorablevariance? 3. At October 23, 2019, Ford forecasted (budgeted) thatits adjusted EPS (earnings per share) would be $1.20 - $1.32 pershare. Looking at the results dated February 23, did Ford meet thatforecast? Is this a favorable or unfavorable variance? 4. What isFord’s President, Jim Hacket’s reason regarding the budgetvariances?
