Marty Whitfield ACG 2021 Section 080 General Motors

Executive Summary General Motors Inc. is the largest automotive manufacturer in the world and as leader in automotive technology such as their Hydrogen fuel cell project and the OnStar program they are incorporating, GM will lead the pack of automobiles to prove to be the #1 to be involved in. r/index.html

Introduction Chairman and Chief Executive Officer: Richard Wagoner Location of home office: GM Renaissance Center, Detroit Michighan CEO Rick Wagoner Ending date of latest fiscal year: December 31, 2004 Principal products and services: Automotive manufacture who supplies the globe with unprecedented technology in the automotive business while incorporating business models to make our driving experience easier. Main geographic area of activity: GM has manufacturing operations in 32 countries and its vehicles are sold in 200 countries

Audit Report Name of the company’s independent auditors. Deloitte & Touche LLP Report of the Independent Auditors: In our opinions, We have audited the accompanying Consolidated Balance Sheets of General Motors Corporation and subsidiaries (the Corporation) as of December 31, 2004 and 2003, and the related Consolidated Statements of Income, Cash Flows, and Stockholders’ Equity for each of the three years in the period ended December 31, Our audits also included the Supplemental Information to the Consolidated Balance Sheets and Consolidated Statements of Income and Cash Flows (the financial statement schedules). These financial statements and financial statement schedules are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedules based on our audits. March 14, 2005 by

Stock Market Information Oct 10, 2005 GM ($1-2/3 par value Common Stock)Exchange: NYSE (US Dollar) Last Trade:$27.03 Change:-1.26 % Change:4.45% Volume:13,880,600High:$28.30 Open:$27.34Low:$26.50

Part B. Industry Situation and Company Plans General Motors automotive focused continue to strived on making their vehicles more fuel efficient as they are leading maker of cars that achieves above 30mpg. As for GM, they are also devoting a lot time to their Hydrogen fuel powered car to find alternative energy sources to power the next generation vehicles

Part C. Income Statement Financial Highlights

. PERIOD ENDING31-Dec-0331-Dec-0231-Dec-01 Assets Current Assets Cash And Cash Equivalents32,554,00021,449,00018,555,000 Short Term Investments22,215,0002,174,000790,000 Net Receivables20,532,00018,223,00013,283,000 Inventory10,960,00015,272,00014,558,000 Other Current Assets -- Total Current Assets86,261,00057,118,00047,186,000 Long Term Investments198,778, ,859, ,661,000 Property Plant and Equipment72,594,00036,152,00039,724,000 Goodwill3,790,0006,992,00010,006,000 Intangible Assets970,0007,619,0006,921,000 Accumulated Amortization--- Other Assets58,924,00041,372,00014,177,000 Deferred Long Term Asset Charges27,190,00032,759,00022,294,000 Total Assets448,507, ,871, ,969,000 Liabilities Current Liabilities Accounts Payable99,352,00069,517,00053,513,000 Short/Current Long Term Debt-1,516,0002,402,000 Other Current Liabilities--8,331,000 Total Current Liabilities99,352,00071,033,00064,246,000 Long Term Debt271,756, ,424, ,912,000 Other Liabilities44,316,00092,766,00071,053,000 Deferred Long Term Liability Charges7,508,000-4,305,000 Minority Interest307,000834,000746,000 Negative Goodwill--- Total Liabilities423,239, ,057, ,262,000 Stockholders' Equity Misc Stocks Options Warrants--- Redeemable Preferred Stock--- Preferred Stock--- Common Stock937,0001,032,0001,020,000 Retained Earnings13,421,00010,198,0009,463,000 Treasury Stock--- Capital Surplus15,185,00021,583,00021,519,000 Other Stockholder Equity-4,275, ,999,000-12,295,000 Total Stockholder Equity25,268,0006,814,00019,707,000 Net Tangible Assets$20,508,000 ($7,797,00 0)$2,780,000 Balance Sheet

Statement of Cash Flows

Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of General Motors Corporation and domestic and foreign subsidiaries that are more than 50% owned, principally General Motors Acceptance Corporation and Subsidiaries (GMAC), (collectively referred to as the “Corporation,” “General Motors” or “GM”). In addition, GM consolidates variable interest entities (VIEs) for which it is deemed to be the primary beneficiary. General Motors’ share of earnings or losses of associates, in which at least 20% of the voting securities is owned, is included in the consolidated operating results using the equity method of accounting, except for investments where GM is not able to exercise significant influence over the operating and financial decisions of the investee, in which case, the cost method of accounting is used. GM encourages reference to the GMAC Annual Report on Form 10-K for the period ended December 31, 2004, filed separately with the U.S. Securities and Exchange Commission (SEC). Certain amounts for 2003 and 2002 have been reclassified to conform with the 2004 classifications. Nature of Operations, Financial Statement Presentation, and Supplemental Information GM presents its primary financial statements on a fully consolidated basis. Transactions between businesses have been eliminated in the Corporation’s consolidated financial statements. These transactions consist principally of borrowings and other financial services provided by Financing and Insurance Operations (FIO) to Automotive and Other Operations (Auto & Other). A master intercompany agreement governs the nature of these transactions to ensure that they are done on an arms length basis, in accordance with commercially reasonable standards. To facilitate analysis, GM presents supplemental information to the statements of income, balance sheets, and statements of cash flows for the following businesses: (1) Auto & Other, which consists of the design, manufacturing, and marketing of cars, trucks, locomotives, and related parts and accessories; and (2) FIO, which consists primarily of GMAC. GMAC provides a broad range of financial services, including consumer vehicle financing, full-service leasing and fleet leasing, dealer financing, car and truck extended service contracts, residential and commercial mortgage services, vehicle and homeowners’ insurance, and asset-based lending. Statements of Cash Flows After considering the concerns raised by the staff of the SEC, management has concluded that certain prior year balances in the Consolidated Statements of Cash Flows should be reclassified to appropriately present net cash provided by operating activities and net cash used in investing activities. The Corporation’s previous policy was to classify all the cash flow effects of providing wholesale loans to its independent dealers by GM’s Financing and Insurance Operations as an investing activity in its Consolidated Statements of Cash Flows. This policy, when applied to the financing of inventory sales, had the effect of presenting an investing cash outflow and an operating cash inflow even though there was no cash inflow or outflow on a consolidated basis. The Corporation has changed its policy to eliminate this intersegment activity from its Consolidated Statements of Cash Flows and, as a result of this change, all cash flow effects related to wholesale loans are reflected in the operating activities section of the Consolidated Statement of Cash Flows for This reclassification better reflects the financing of the sale of inventory as a non-cash transaction to GM on a consolidated basis and eliminates the effects of intercompany transactions. The following table shows the effects of this reclassification on prior years, consistent with the 2004 presentation.

Part E. Financial Analysis Liquidity Ratios For the past two years, calculate and comment on: Working Capital: Current Ratio: Receivable turnover: Average days’ sales uncollected: Inventory turnover: Average days’ inventory on hand:

Part E. Financial Analysis Profitability Ratios Profit Margin (ttm):-0.61% Return on Assets (ttm):0.20% Return on Equity (ttm):-4.43% Gross Profit (ttm):33.45B Total Debt (mrq):283.62B Total Debt/Equity (mrq): Current Ratio (mrq):3.739

Part E. Financial Analysis Solvency Ratio For the past two years, calculate and comment on: Debt to equity

Part E. Financial Analysis Market Strength Ratios Price/earnings per share is $4.97