Assignment: ANNUAL REPORT PROJECT
General project instructions:
Please read this document carefully, if you submit the assignment incorrectly and are asked to resubmit it for any reason, it will be considered as at least one day late.
• Choose a company in which you are interested. Your company must be a Fortune 500 company and it must be traded on a national stock exchange (NYSE, NASDAQ).If you want to look at a list of possibilities, go to fortune, which has a list of the Fortune 500 companies.
- You will have an easier time if you do NOT choose a foreign owned company, public utility, financial institution (bank) or brokerage firm, or an insurance company.
• Download a copy of the annual report or 10-K. You will be referring to it constantly and taking screen shot to complete all parts of this project. (See below for how to get the annual report.)
• Do not create a new or separate document to answer these questions; just complete this documentthat I have provided. Almost all the information for this project should come from your company's annual report (or 10-K).
• Throughout all the parts of the project, information is requested from specific pages in the annual report. You will need to take a readable screenshot or picture of the page(s) requested and insert it in this document where requested.
• When a question asks you to explain, describe, analyze, etc., use complete sentences and well-organized paragraphs.
Part 1 (Use the same company for all parts of the project.)
Obtain the Annual Report for your company
Obtain and download an annual report, or a Form 10-K, for your Fortune 500 Company. If you have a choice between an annual report and a Form 10-K, use the annual report. A useful resource is fortune.com. This site provides links to the Web sites of Fortune 500 companies. The easiest way to obtain a company's annual report is to Google the company plus "annual report". For example, if my company was Walmart, I would Google, "Walmart annual report". Make sure to select the most recent year's annual report.
1. Name of company chosen: GENERAL MOTORS COMPANY
(You will use the same company for all parts of the project)
2. Year of the annual report: FOR THE FISCAL YEAR ENDED DECEMBER 31, 2015
3. Information about the company:
a. Describe the nature of the company's business.
Nature of the Company's Business: General Motors Company or GM was incorporated as a Delaware corporation in 2009. They design, build and sell cars, trucks, crossovers and automobile parts worldwide. They also provide automotive financing services through General Motors Financial Company, Inc.
b. List the company's primary products or services (use brand names where available).
Co.'s primary products or services: There automotive operations meet the demands of customers through four automotive segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA).GMNA primarily meets the demands of customers in North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet and GMC brands. The demands of customers outside North America are primarily met with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. They also have equity ownership stakes directly or indirectly in entities through various regional subsidiaries, primarily in Asia. These companies design, manufacture and market vehicles under the Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling brands.In addition to the products they sell to their dealers for consumer retail sales, GM also sell cars and trucks to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. GM Financial conducts its business in North America, Europe, South America and, because of the 2015 acquisition of Ally Financial, Inc.'s (Ally Financial) equity interest in SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC), in China. GM Financial provides retail lending, both loan and lease, across the credit spectrum. Additionally, GM Financial offers commercial products to dealer customers that include new and used vehicle inventory financing, inventory insurance, working capital, capital improvement loans, and storage center financing. In North America, GM Financials' retail automobile finance programs include prime and sub-prime lending and full credit spectrum leasing.
c. What is the address of the company's corporate headquarters?
Address of company's corporate headquarters: 300 Renaissance Center, Detroit, Michigan 48265-3000.
d. What is the address of the company's Web site?Address of company's website: www.gm.com
e. Who is the chairman of the company's board of directors?Chairman of the Company's Board of Directors: Mary T. Barra
f. Who is the company's CEO? Company's CEO: Mary T. Barra
4. Provide the following market data:
a. On what stock exchange is the company's stock traded? New York Stock Exchange / Toronto Stock Exchange
b. What is the ticker symbol for the company? Ticker symbol for the Company: General Motors Company's common stock is traded on the New York Stock Exchange under the ticker symbol GM and the Toronto Stock Exchange under the ticker symbol GMM.
c. What was the price of the company's stock at the end of one day during this past week?
Price: $30.55 on NYSE Date: 15/04/2016
$30.44 on TSE 15/04/2016
(Insert screen shot of your answer here.)
Overview of annual report
5. Locate the following areas of your annual report and note the page number(s) of each:
a. FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA. This contains several key numbers that will be required in future assignments.Page(s)19
b. MANAGEMENT DISCUSSION AND ANALYSIS. This section discusses operating results, industries in which the company operates, financing and investing activities, significant events, trends and developments. Page(s) 20
(Insert screen shot of page 1 of your answer here.)
c. THE FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS.
This section contains the balance sheet (also called statement of financial position), income statement, statement of cash flows and statement of stockholders' equity. The accompanying notes, as indicated at the bottom of each of the above statements, are an integral part of the financial statements. The financial statements cannot be understood without reference to the notes.
You will use these in the remaining parts of the project:
Balance Sheet Page 54
What were the company's total assets for the most recent year? $194,520
(Insert screen shots of the balance sheet here.)
Income Statement Page 52
What were the company's gross revenues for the most recent year? $152,356
(Insert screen shots of the income statement here.)
Statement of Cash Flows Page 55
What was the company's net change in cash for the most recent year? ($3,716)i.e. a net decrease in cash and cash equivalents was recorded.
(Insert screen shots of the statement of cash flows here.)
Statement of Stockholders' Equity Page 56
What was the company's ending balance for the most recent year? $40,323
(Insert screen shots of the statement of stockholder's equityhere.)
Notes to the financial statements:
Summary of significant accounting policies Note #__2___ Page__57_____
Long-term debt Note #__12___ Page__73_____
Plant Assets (aka Property, Plant & Equipment)Note #__8___ Page__70_____
Commitments and contingencies Note #__15___ Page___83____
(Insert screen shots of the beginning of each note here.)
d. MANAGEMENT REPORT ON INTERNAL CONTROL Page___105____
(Insert screen shots of first page here.)
e. THE INDEPENDENT AUDITOR'S REPORTS. The independent auditors may issue two reports or combine them into one report.If there are two, one report should discuss internal controls and the other should discuss the financial statements.
REPORT ON INTERNAL CONTROL Page___50____
(Insert screen shot of your answerhere.)
REPORT ON THE FINANCIAL STATEMENTS Page___51____
(Insert screen shot of your answerhere.)
How to submit this assignment:
Complete and submit this document in Canvason or before the due date. Do not create a new document.
General project instructions:
Read this document carefully, if you submit the assignment incorrectly and are asked to resubmit it for any reason, it will be considered as at least one day late.
• Complete this document using the annual report that you downloaded for Part 1.
• Do not create a new or separate document; just complete the one I provide. Almost all the information for this project should come from your company's annual report.
• Throughout all the parts of the project, information is requested from specific pages in the annual report. You will need to take a readable screenshot or picture of the page(s) requested and insert it in this document where requested.
• When a question asks you to explain, describe, analyze, etc., use complete sentences and well-organized paragraphs.
Part 4 (Use the same company for all parts of the project.)
Name of company chosen: _________________________________
(You will use the same company for all parts of the project)
Year of the annual report: ______________
CHAPTER 11: STOCKHOLDERS' EQUITY
A. THE BASICS
Use the company's balance sheet in your annual report to answer the following questions. (You may also need to refer to the footnotes.)
Page on which balance sheet appears: _________
(Insert screen shot here to support your answer.)
1. What is the par, or stated value, per share of the common stock? $__________
2. How many shares of common stock have been issued?
Annual Report: Current year _________________ Previous year __________________
3. How many shares of common stock are outstanding?
Annual Report: Current year _________________ Previous year __________________
4. Does the company have any preferred stock? ______________________
If so, what is the: Par value per share _______
5. List the major line items, or sections, of the Equity area on the balance sheet(Do not list each line item):
B. FURTHER ANALYSIS
1. Using the formula given in the textbook, calculate the following ratio for the last two years.You might find outstanding shares for multiple years in the stockholders' equity statement:
Show your computations.
a. Basic Earnings per share:
Annual Report: Current year ______________________ Last year ____________________
b. Explain what information this ratio provides. Why do we use it?
c. How do the results for your company compare by year? Explain and give possible reasons for what you've found. (at least one paragraph)
C. INFORMATION FOR DECISION MAKING
1. Answer the following questions using the company's balance sheet in the annual report:
a. In which equity account does the company have the largestdollar amount?
b. In total dollar amounts, is the company's equity primarily contributed or retained earnings.
How to submit this assignment:
Complete and submit this document in Canvason or before the due date. Do not create a new or different document.