General Information
The organization selected for this corporate financial statement analysis is General Motors Company occasionally referred to as GM. The company is an American multinational firm that operates in the automotive industry with its headquarters being at Detroit, Michigan, the United States. GM manufactures, designs, markets and distributes new trucks, cars and vehicle parts worldwide. The firm has presence in approximately 396 facilities spread out in six continents. By close of year at December 31st 2017, the company had 57% of total employees which equates to 103,000 individuals under an hourly employment. The remaining 43 percent that represents 17,000 employees are salaried (General Motors, 2018).
Stockholder’s data
The number of people who own varying amount of shares in the company are 1, 139. Nonetheless, three individuals who are Mary Barra, Daniel Amman, and Mark Reuss own majority of the shares in this organization. Barra is the current CEO of the company a role she occupied in 2014 after the previous CEO left the firm. She is the first female CEO and also happens to be the largest shareholder owning approximately 389,885 share. On the other hand, Ammann is the company’s current president a role that he also undertook from 2014 and owns 145,953 shares making him the second largest shareholder. Finally, Reuss is an executive vice president at GM and owns at least 103,052 shares. The total numbers of shares outstanding in the company are 1,402,630,363 Shares while the par or stated value of common stock per share is $0.01 par value. According to the figures in The Wall Street Journal as of 9th March 2018, the closing price per share of common stock was $ 37.83. GM has preferred stock or what is known as preferred share, which is often a share that entitles holders to fixed dividends, and hence its payment is prioritized over the holders of ordinary shares. The trading symbol or abbreviation of the company utilized in The Wall Street Journal is NYSE:GM.
Auditors report
DELOITTE & TOUCHE LLP an auditing firm that has served GM from 1998 audited the company. After making an audit of the financial statements, the auditing company opinion was that they depicted a fair presentation of the company’s financial position in all material respects. Moreover, the position of Deloitte was that the cash flows were conforming to the accounting principles that are generally accepted in America. Additionally, after auditing the internal control mechanisms of the company over financial reporting in the year ending 31st Dec 2017, an unqualified opinion was expressed (General Motors, 2018).
Historical summary
The annual report of the financial year 2017 shows the financials of three years specifically 2017, 2016, and 2015.
Balance sheet
The consolidated balance sheet of General Motors Company has been presented in million dollars except for the per share amounts. The total assets of the company have been increasing from the year 2013 to 2016 and only faced a decline in 2017. The total assets of the company in December 2017 were $ 212, 482 compared to $ 221, 690 the previous year. However, the cash at hand increased from the previous to $ 15, 512 from a low of $ 12, 574 in 2016. The total accounts receivables also experienced an increase from the previous years while the quick assets decreased. In addition, the total current assets decreased a similar case to the total current liabilities compared to the previous year. While between 2015 and 2017 the total long-term liabilities only experienced small changes, the recent figures show an increase the long-term debts that the company owes to creditors. The amount of deferred taxes was set at $ 30.7 billion. Based on the numbers in the balance sheet, GM’s liabilities and assets appear to be quite balanced and often fluctuating year in year out due to the changes in the global automotive industry. The need to satisfy consumers has made automotive companies realign their strategies towards innovation and technology.
Financial ratio
The in the last financial year, the company estimated that it’s working capital moving in 2018 was $ 1.8 billion. Financial ratios are important indicators on the liquidity and financial position of the organization. The first ratio that is critical in depicting this is the current ratio which is mainly used to provide an idea of the ability of the firm to pay liabilities using the assets that it has. An increase in the current ratio shows the rising ability of the company to repay liabilities. Creditors often consider a higher current ratio as it indicates there is high likelihood to be repaid. In this case, the current ration for GM in the year ending 2017 was 0.89 which is a high ratio and depicts the company has ability to meet its debts obligations. Secondly, the acid test ratio also known as quick ratio is useful in measuring the capability of the firm to utilize near cash to meet its current liabilities. Normally, a quick ration should be 1:1; however, in cases where it is less than one, a firm lacks the ability to fully pay back the current liabilities. In the case of GM, the quick ratio is less than one specifically 0.76 depicting the challenges to settle current liabilities. To assess the efficiency of the company, the accounts receivables can be used as it shows how many days the firm takes to collect all receivables from the customers. Often, the higher the ratio the faster the dues are collected. GM’s accounts receivables is 4.82 which means that if a credit sale is made it will take the company 75 days to collect the cash. Other ratios which are critical include the inventory turnover which is used in measuring the number of times inventory is sold annually. The company’s inventory turnover is approximately 11.61 which means that the number of days sales in inventory is 31. Other ratios include the ratio of net sales to assets which is 0.67. According to The Wall Street Journal, the price-earnings ratio was -14.91 while the dividend of the company was 3.71.
Financial statement
The number of notes to the financial statements was 25. The financial statement pages are of a different color from the rest of the annual report.
Income statement
GM’s income from continuing operation before income taxes at 31st Dec 2017 was $ 330 with per share amount of $ 0.23. The taxes on continuing operations was $ 11, 533 while the loss on discontinued operation was $ 4, 212. The company’s earnings per share are not given as “primary” and “fully diluted.”

References
General Motors (2018). Annual report 2017. Retrieved from: http://phx.corporate-ir.net/phoenix.zhtml?c=231169&p=irol-secTextTest&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEyMDI2NTgwJkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3
The Wall Street Journal (2018). General Motors Company. Retrieved from: http://quotes.wsj.com/GM/financials

APPENDIXB

CORPORATEFINANCIAL STATEMENT ANALYSIS WORKSHEET

The corporate financial statement analysis project requires you to analyze a corporate annual report. The project is due in week/unit8.You must turn in a photocopy of the balance sheet, income statement, and other information sources of your corporation along with this handout so the instructor can grade it.

General Information:

1. Name of corporation: General Motors Company

2. Line of business: Automotive

3. Location of headquarters: Detroit, Michigan, U.S.
4. Number of employees: 180,000

5. The annual report is for the fiscal year ended: December 31, 2017

Stockholders’ Data:

6. Par or stated value of common stock, if any, per share: $0.01 par value

7. Number of shares outstanding: 1,402,630,363 Shares

8. Number of different people owning shares: 1,139

9. Closing price per share of common stock in The Wall Street Journal: $ 37.83

10. Does the corporation have preferred stock (yes/no)? Yes

11. Trading symbol/abbreviation used in The Wall Street Journal: NYSE:GM

Auditors’ Report:

12. Name of audit firm: DELOITTE & TOUCHE LLP
13. Opinion: Unqualified
(“clean,” “qualified,” “adverse,” or” disclaimer”)
Historical Summary:

14. Number of years included: Three

Balance Sheet: Be very careful to note whether the numbers in the financial statements are given in dollars, thousands of dollars, millions of dollars, etc. If you don’t take care about this you could get this entire section wrong! [In millions]

15. Total assets $ 212,482
16. Cash $ 15,512
17. Accounts receivable $ 28,685
18. Quick assets $ 58,081
19. Total current assets $68,744
20. Total current liabilities $ 76,890
21. Total long-term liabilities $ 67,254
22. Amount of deferred taxes, if any $ 30.7 B

Financial Ratios: Use the formulas from the textbook.

23. Working capital $ 1.8 B

24. Current ratio: 0.89
Nn9

25. Acid-test ratio: 0.76

26. Accounts receivable turnover: 4.82

27. Number of day’s sales in receivable: 75

28. Inventory turnover: 11.61

29. Number of day’s sales in inventory: 31

30. Ratio of plant assets to long-term liabilities: 0.32

31. Ratio of liabilities to stockholders’ equity: 1.92

32. Number of times interest charges earned: 17.42
33. Number of times preferred dividends earned: 0

34. Ratio of net sales to assets: 0.67

35. Rate earned on total assets: -1.83

36. Rate earned on stockholders’ equity: -9.84

37. Rate earned on common stockholders’ equity

38. Earnings per share on common stock: -2.65

39. Price-earnings ratio in the Wall Street Journal: -14.91

40. Dividend yield in The Wall Street Journal: 3.71

Financial Statements:

41. Number of notes to the financial statements: 25

42. Were the financial statement pages a different color than the rest of the annual report?(Yes/No) Yes

Income Statement:

43. Income from continuing operation before income taxes
$ 330 $ 0.23
(Dollar amount) (Per share amount)

44. Taxes on continuing operations

$ 11,533 $ 0.22
(Dollar amount) (Per share amount)

45. Extraordinary gain or loss, net of tax(if any)
$
(Dollar amount) (Per share amount)

46. Gain or loss on discontinued operations, net of tax(if any)
$4, 212 $2.88
(Dollar amount) (Per share amount)

47. Cumulative effect of change in accounting, principle, net of tax(if any)
$
(Dollar amount) (Per share amount)
48. Was the earnings per share given as “primary” and “fully diluted”?

Yes No

Miscellaneous

49. Name of the president or CEO: Mary T. Barra

50. Did the notes to the financial statements discuss a contingent liability?
Yes No