ACG 205 Analyze the General Electrics financial performance
You will analyze the General Electric’s financial performance, highlighting accounting principles and methods learned in this course. This project requires you to present, review, and analyze the organization’s published annual reports and related footnotes for the last 2 years. Specifically, your paper will cover the following:
- Discuss methods used to account for assets, liabilities, and shareholder equity, and explain how the company’s inventory valuation method affects reported results.
- Explain the company’s approach to internal controls, and assess its compliance with Sarbanes-Oxley.
- Prepare and interpret the results of horizontal and vertical analyses of the financial statements.
- Prepare and interpret the results of at least 5 ratios, 1 from each of the following categories:
- Profit Ratios
- Debt Ratios
- Efficiency Ratios
- Equity Ratios
- Liquidity Ratios
- Assess the company’s overall financial performance and the integrity of its internal controls.
- Discuss how various stakeholders—internal and external—use information contained in the financial statements for decision making.
Include the last 2 years of published financial statements as Appendices to your report. Do not include the entire Annual Reports.
Explain the meaning and effects of transactions on revenues, expenses, assets, liabilities, and capital
Analyze the composition of “Capital” for unincorporated and incorporated for-profit entities
Explain how accounting policies and practices affect financial accounting information used for “external” decision making purposes
Discuss the various user groups that need accounting information and the characteristics of the information that they use
Prepare a Trial Balance, Income Statement, Owner’s Equity Statement, and Balance Sheet
Explain managerial decision processes requiring the use of accounting-based information