Week 5 Final Paper Financial Statement For Toyota

Topics: Balance sheet, Toyota, Asset Pages: 10 (2237 words) Published: April 12, 2015


Financial Statement for Toyota
Cory Pelisek
ACC205: Principles of Accounting
Instructor: Theresa Murray
Monday, December 15, 2014

In tough times and good times, you will see Toyota Motor Corp. at the top of the list for automobile manufactures around the World. During the collapse of the United States mortgage industry many businesses and economies around the World started failing and even became bankrupt and needed bailouts to survive. Toyota stayed on par with the big three auto manufactures in the United States without needing help from our federal government like the rest of them did. “Even after becoming the first auto company to make more than 10 million cars in a single year, Toyota Motor Corp. said Tuesday that it would refrain from building any new plants for at least two more years. Nobuyori Kodaira, executive vice president of Toyota, said that the company planned to heed the lessons it learned during the global financial crisis that began in 2007, when it struggled for several years with overcapacity before demand recovered (Pfanner 2014)”. As a result of an economic recession, Toyota’s sales were down in 2008, but the Toyota brand outsold Chevrolet to become the number one selling automotive brand in America, and Camry retained its crown as the number one selling car in the nation for the eleventh time in twelve years. Toyota also recently passed General Motors in global sales to become the world’s largest automaker for the first time in history; when a company has good financial practices and spending restraints during tough times, they will not only survive tough times, but thrive during them. In order to know where a businesses need to improve, they create income statements. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue. “Liquidity ratio expresses a company's ability to repay short-term creditors out of its total cash. The liquidity ratio is the result of dividing the total cash by short-term borrowings. It shows the number of times short-term liabilities are covered by cash (Boundless Liquidity rations n.d.)”. The current ratio is the basic liquidity ratio, showing how well the company can cover short-term obligations. Based on my analysis I will depict whether or not to recommend an individual invest in this company, what strengths I see, and what risks I see? Toyota Motor Company just recently celebrated its 75th anniversary in the automotive industry; started originally in 1933 as an automatic loom works company called Toyoda, in 1935 their first passenger car (Model AA) was completed. In 1936 first four trucks G1 were exported to the northern China. A year later, in 1937, the automobile department became a separate company, called Toyota Motor Co., Ltd. After years of success in Japan and Asia, they decided to expand overseas and establishing headquarters in other countries. “Toyota Motor Sales, U.S.A., Inc., was formed Oct. 31, 1957, establishing its headquarters in a former Rambler dealership in Hollywood, Calif. Sales began in 1958 and totaled a modest 288 vehicles (Toyota Motor Corp 2014)”. Over the next couple decades more Americans started to realize the quality and reliability of Toyota’s vehicles and by 1967 they became the third bestselling import brand in the United States; by the end of 1975 Toyota beat out Volkswagen to the number one spot. When Toyota celebrated its 25th anniversary in the United states, it became the first foreign automaker to sell more than one million vehicles. That same year also marked the company's debut as a manufacturer in the United States, with the rollout of the first Toyota car built on American soil. As Toyota's presence in America grew, the company sought a larger role in communities across the nation. So, to commemorate the company's 30th anniversary in America in 1987, Toyota established the Toyota USA...


References: Bloomberg Business week (2014). Toyota Corp income statement. Retrieved from
http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=7203:
Toyota Motor Corp. (2014). Consolidated Income Statement. Stock Analysis on net. Retrieved
from http://www.stock-analysis-on.net/NYSE/Company/Toyota-Motor-Corp/Financial-
Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I. San Diego, CA: Bridgepoint
Education, Inc.
Yahoo Finance (2014). Toyota Motor Corporation Income Statement. Yahoo Finance.
Retrieved from http://finance.yahoo.com
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