General Motor (GM) provides their records assets in their yearly statement in which they provide to the public in December before the end of the year. Some of the assets mentioned on their balance sheet are in sequence of liquidity to make sure that the investors can see how much money is available in case they require the capital for growth or debts. It is extremely important for the administration to be conscious at all times of the business asset level to ensure that important decisions are being made, which in my opinion helps to decided which path the business takes.
Some decision on whether or not to launch a line of cars (inventory) or construct a new plan (fixed assets), would affect the volume of the present available assets. It is incredibly important to notice the assets that are being described as any other assets that will change into money within the 12 month period. General Motor (GM) by the end of 201 0 had a total of $138,898. 00 million in total assets. The 45 percent of these assets are regarded as the present assets and are obtainable by the organization at any time to pay debts, invest, or grow.
The other 55 recent of General Motors assets are fix and non-current assets, which mean that it’s less liquid and it would require time to change into money in the case the scenario arose. The total of General Motor assets at the end of 2009 were $136,295. 00 Million. These shows a 1 percent grow in 2010, which as described to the shareholders is regarded as a dull rate of growth. This demonstrates the improvement was achieved by the end of 2010; it also is view as the company’s rate of growth is almost at a standstill pace.
In the case of both year 2009 and 2010 current assets were compared to the previous ear of 2008, it would indicate that the positive growth in the investor eye and since the comparison to 2008 vs.. 2009 and 2010 only represent a 15 percent growth in the assets. This report was found for Common Motors in December 201 0 report. In 2010 General Motor announced $21 ,061 billion (Hover’s Inc, 201 1). This was reduce at the beginning of 2011 revealing a $22,679 billion, a variation of $1,618 billion.
The reduction of the money as well as the money equivalent through out the year, demonstrates the business expenditure, which it shows that they were over income therefore the money that was available was use to pay the current debt. When we look back at the 2009, the organization started out with the money equivalent of $14,053 billion and they finish the year with $22,679 billion according to Hoovers Inc, 2011. It demonstrates that the organization is much better position compared to the report for 2010.
The organization remains steady, prior to the reduction. At the end of 201 0, General Motors announced $21,497 billion in accounts payable. However the accounts payable was configured at the conclusion of the year report in 2010. The sum was substantial growth from the past year accounts payable of $18,725 billion. This shows that General Motor expend much more money in 2009 than 2010. However when we look at the sums total debt for 2010 and 2009, we can see that the organization reduce the liability in the sum of $1 2,868 billion.
This shows General Motor have increase the accounts payable in the attempt to reduce their debts. The General Motor organization total assets at the conclusion of 2009 reporting period was $62,340, and the present assets for the conclusion for the year of 2011 was $59,247. Which mean that General Motor has a total profit of 53,093. 00. The total assets are significant because the sum of assets is regard as to the changeable money in a period of time. General Motor net earnings change in the final 3 yearly report intervals, starting from 2008 to 2010.
General Motor in 2008 had a net income of S 148. 98 billion. This amount was reduced in 2009 with a total net income of $104. 59 billion. Beethoven the two years General Motor suffer a loss of $44 billion, and during 2010 General Motor income increase to $135. 59 billion, higher than the year before but not as much as in 2008. General Motor net revenue is significantly altered from 008 to 2009 and also in 2009 to 2010. General Motor in 2008 net revenue was -$30. 94 billion, however in the following year it enhanced to $104. 82 billion; a raise of $135. 76 billion.
The net revenue of General Motor was reduce in 2010 when the net revenue drop to $6. 17 billion; a change of $98. 65 billion. The shareholders can find the information in General Motors balance sheet and revenue report, to be encouraging. Also regardless the downturn that the economy took countrywide, but General Motor managed to enhance their earnings following the reduction of the year before. This moms as great news to the shareholders who wish to invest. The employees also would look at the same factor, however they would be looking towards security rather than profits.