ACCOUNTING AND FINANCIAL ANALYSIS
Company name: General Motors Company
Ticker symbol: MTLQQ
Exchange on which it is traded: NASDAQ
Net sales in2009 (Million): $104,589
Current Stock Price: $0.61
Since 2005, General Motors went through significant losses from its operations and from restructuring its activities. However, the global creditmarket crisis had a dramatic effect on General Motors and the automotive industry.
In 2008, the increase in mortgage and overall credit market, the volatile in the price of oil, the recession inthe United States and Europe slowdown the economic growth and made the automotive industry business more difficult.
On June 2009, General Motors Corporation filed for bankruptcy and became a newindependent company: General Motors Company.
ACCOUNTING: GENERAL MOTORS
In the year of 2007, the firm’s net income was recorded at 38 million. The netsales and revenue were estimated at 179 million and their cost at 184 million which reflected a loss of 4 million. To attempt to decrease their losses, General Motors discontinued certain operations byselling the Allisson Business Transmission.
At the end of 2008, General Motors kept having a negative net income even though the total costs and expenses were less than the previous year. GM wasnot able to increase its revenue which leads to an operating loss of 21 million in contrast to 43 million of dollars in 2007.
In the year of 2009, as the year went by, General Motors wasn’t able toreduce its operating costs; moreover the economic condition didn’t help its financial decline. In 2008, General Motors decided despite its effort to restructure, it wouldn’t be able to pay its debtsfor the year of 2009. General Motors filed for a government assisted bankruptcy and received 128 million for reorganization. At the end of 2009, the firm’s net income was estimated at10 million....