In: Accounting
Internet Case 20.4 – Using the SEC EDGAR Database
(MUST POST FIRST) Initial Post – As an employee, write an internal memo to your manager addressing the following:
Visit the home page of The Securities & Exchange Commission at the following address: www.sec.gov
Use EDGAR to locate the most recent 10-K by researching an automotive company of your choice on the Internet and examine its consolidated income statement.
I CHOOSE GENERAL MOTORS
In the most recent year reported, what percentage of the company’s total revenue was from financial services?
In the most recent year reported, what was the company’s gross profit as a percentage of automotive sales?
How might the company’s sales mix (e.g., trucks, cars, sport utility vehicles, etc.) influence its profitability?
Solution:
Office Memo To : The Manager From : Employee CC : Others Date : 8-Feb-2018 Sub : Analysis of 10-K filed recently by General Motors for FY 2017 After careful study of form 10-K recently filed by General Motors with SEC, which is available with www.SEC.gov the following data is compiled:-
A. Level of Company's income from Financial Service
According to 10-K recorded by the Company, out of all out income of $145,588M for FY 2017, income from budgetary administrations was accounted for as $12,151M which is 8.3% of complete income.
B.Gross Profit from Automotive fragment as a rate its deals
The organization has revealed a gross benefit of $18,738M from it's car section in FY 2017 which is 14% of its clearance of $133,607M from the portion
C.Impact of Company's business blend
The Company has detailed a troublesome blend sway on it's productivity for FY 2017 related with the Chevrolet Malibu, Volt and Spark, in part counterbalanced by full-estimate trucks and SUVs and a decrease in rental vehicle exercises
I will be happy to give any additional data or illumination in such manner.
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