ACC 3100 – Fall 2020	Name____________________

Financial Statement Project – 30 points

Instructions: Use the financial statements from the annual report for the year ended 12/31/2019 for General Motors Company (GM). The Annual Report is attached. Answer the questions after each question. Use a different font to distinguish your answer from the question. All answers should be in your own words. Do not cut and paste from the annual report. Answers will be graded for content and written communication skills. Use complete sentences in answering questions.

MAKE A NOTATION HERE IF THE DOLLAR AMOUNTS ARE NOT STATED IN MILLIONS.

1. Who are the external auditors for General Motors (GM)? What does their Report of Independent Registered Public Accounting firm indicate about the amounts represented in the company’s financial statements?

2. What type of income statement does GM issue? (multi-step, single–step) Explain. How much is “Net income (loss) attributable to noncontrolling interests” for the year ended 12/31/2019?

3. When does GM recognize revenue? Is this consistent with the material presented in ACC 3100?

4. How does GM define Cash Equivalents? Is this consistent with the textbook?

5. Does GM has restricted cash on 12/31/2019? If it does, how much is it? Is restricted cash part of “Cash and cash equivalents”, why?

6. Calculate the following ratios for the year ended 12/31/2019: Accounts Receivable Turnover and Days Sales in Accounts Receivable. Show work. (Hint: combine/add the sales revenue and accounts receivable for both automotive segment and financial segment of GM in your calculations). If the industry standard for AR Turnover is 3.5 and Days Sales in AR is 90 days, how does GM compare?

7. What was GM’s current ratio and working capital as of 12/31/2019?

8. Create a table illustrating the amount GM reports for net cash flows from operating, investing, and financing activities in its statement of cash flow for the year ended 12/31/2019. Show calculations. (Hint: you will need to take foreign currency translation adjustments into account.)

9. From the Consolidated Statements of Comprehensive Income, how much are the net income and total other comprehensive income, respectively, reported for the year ended 12/31/2019? What specific items & amounts are reported as other comprehensive income for the year ended 12/31/2019?

10. What is GM’s inventory turnover ratio and average days to sell in 2019? Please show computations.

11. Did GM purchase any property, plant and equipment during the year ended 12/31/2019? If so, what were the dollar amount?

12. Which depreciation method is used for PP&E? What estimates are made for the useful life of depreciable assets?

13. What was total depreciation and amortization expense in 2019? Where were these amounts reported in the financial statements?

14. What % of total gross PP&E has been depreciated by 12/31/2019?

15. What amount of total dividends was paid for the year ended 12/31/2019? In which financial statement and in which section of that statement is this found?