Description
Option #
Obtain the financial statements of a company with which you are familiar. The Annual report or 10K report of a publicly-traded company would be a great resource for this problem.
- Identify specific account balances for which substantive analytical procedures would be appropriate and discuss your reasoning for selecting these accounts.
- Describe in detail the type of substantive analytical procedures that would be used for these account balances and why this would be an effective test of the account balances.
Explanation & Answer
I will attach the complete answer immediately i finish it. Meanwhile attached are the the finaincail stamtents that i will use
GENERA
L
MOTORS
COMPAN
Y AND
SUBSIDIA
RIES
CONSOLI
DATED
STATEM
ENTS OF
OPERATI
ONS
(In
millions,
except per
share
amounts)
Successor
July 10, 2009
January 1, 2009
Through
Through
December 31, 2009
July 9, 2009
Net sales
and revenue
Sales
Other
revenue
Total net
sales and
revenue
$
57,329
145
57,474
Costs and
expenses
Cost of
sales
Selling,
general
and
administra
tive
expense
Other
expenses,
net
56,381
6,006
15
$
Total costs
and
expenses
Operati
ng loss
Equity in
income (loss)
of and
disposition
of interest in
GMAC
Interest
expense
Interest
income and
other nonoperating
income, net
62,402
(4,928 )
—
(694 )
440
Gain (loss)
on
extinguishme
nt of debt
(101 )
Reorganizati
on gains, net
(Note 2)
—
Income (loss)
from
continuing
operations
before
income taxes
and equity
income
Income tax
expense
(benefit)
Equity
income, net
of tax
Income (loss)
from
continuing
operations
Discontinue
d operations
(Note 5)
(5,283 )
(1,000 )
497
(3,786 )
Income from
discontinued
operations,
net of tax
—
Gain on sale
of
discontinued
operations,
net of tax
—
Income from
discontinued
operations
—
Net income
(loss)
(3,786 )
Less: Net
(income) loss
attributable
to
noncontrollin
g interests
(511 )
Net income
(loss)
attributable
to
stockholders
(4,297 )
Less:
Cumulative
dividends on
preferred
stock
131
Net income
(loss)
attributable
to common
stockholders
$
Earnings
(loss) per
share (Note
28)
Basic
(4,428 )
$
Income
(loss) from
continuing
operations
attributabl
e to
common
stockholde
rs
$
Income
from
discontinu
ed
operations
attributabl
e to
common
stockholde
rs
Net
income
(loss)
attributabl
e to
common
stockholde
rs
(10.73 )
$
—
$
Weightedaverage
common
shares
outstandin
g
(10.73 )
$
413
Diluted
Income
(loss) from
continuing
operations
attributabl
e to
common
stockholde
rs
$
Income
from
discontinu
ed
operations
attributabl
e to
common
stockholde
rs
(10.73 )
—
$
Net
income
(loss)
attributabl
e to
common
stockholde
rs
$
Weightedaverage
common
shares
outstandin
g
Cash
dividends per
common
share
(10.73 )
$
413
$
—
$
Amounts
attributable
to common
stockholders
:
Income
(loss) from
continuing
operations,
net of tax
$
Income
from
discontinu
ed
operations,
net of tax
Net
income
(loss)
(4,428 )
$
—
$
(4,428 )
$
Predecessor
January 1, 2009
Year Ended
Year Ended
Through
December 31, 2008
December 31, 2007
July 9, 2009
46,787
$
147,732
$
177,594
328
1,247
2,390
47,115
148,979
179,984
55,814
149,257
165,573
6,161
14,253
14,412
1,235
6,699
4,308
63,210
170,209
184,293
(16,095 )
(21,230 )
(4,309
1,380
(6,183 )
(1,245
(5,428 )
(2,525 )
(3,076
852
424
2,284
(1,088 )
43
—
—
—
128,155
107,776
(1,166 )
61
109,003
(29,471 )
(6,346
1,766
36,863
186
524
(31,051 )
(42,685
—
—
256
—
—
4,293
—
—
4,549
109,003
(31,051 )
115
108
109,118
(406
(30,943 )
—
109,118
(38,136
(38,542
—
$
(30,943 )
—
$
(38,542
178.63
$
—
178.63
—
$
—
$
611
178.55
(53.47 )
(53.47 )
8.04
$
579
$
(53.47 )
—
(76.16
(68.12
566
$
(76.16
8.04
178.55
$
611
$
579
—
$
109,118
$
—
109,118
(53.47 )
0.5
(30,943 )
566
$
1
$
(43,091
—
$
(30,943 )
(68.12
4,549
$
(38,542
)
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GENERA
L
MOTORS
COMPAN
Y AND
SUBSIDIA
RIES
CONSOLI
DATED
BALANC
E SHEETS
(In
millions,
except
share
amounts)
Successor
Predecessor
December 31,
December 31,
2009
2008
ASSETS
C...