Question
Below shows the Balance Sheets and Income Statements, and future lease commitments of General Electric (ticker: GE) reported in the 10-K files. Assume a 4.5%
Below shows the Balance Sheets and Income Statements, and future lease commitments of General Electric (ticker: GE) reported in the 10-K files. Assume a 4.5% lease discount rate and a 21% income tax rate, please calculate (1) lease depreciation expense, (2) adjusted gross income, (3) adjusted net income, (4) adjusted lease right-of-use assets, and (5) adjusted total liabilities in 2019 and 2020. General Electric Company (ticker: GE) | ||||
Simplified Balance Sheets | ||||
2020 | 2019 | 2018 | 2017 | |
Assets | ||||
Total Current Assets | 88,412 | 77,545 | 88,082 | 106,297 |
Net Property, Plant & Equipment | 44,662 | 46,186 | 50,749 | 53,874 |
Other Property, Plant & Equipment | 75,927 | 75,187 | 87,475 | 89,608 |
Lease Right-of-Use Assets | 2,987 | 2,896 | 0 | 0 |
Accumulated Depreciation | 34,252 | 31,897 | 36,726 | 35,734 |
Total Long-Term Investments | 58,437 | 58,532 | 46,950 | 67,557 |
Intangible Assets | 35,298 | 37,387 | 77,773 | 104,241 |
Deferred Tax Assets | 13,679 | 17,931 | 20,991 | 21,762 |
Other Assets | 14,562 | 36,509 | 33,143 | 39,769 |
Total Assets | 255,050 | 274,090 | 317,688 | 393,500 |
Liabilities | ||||
Current Liabilities | ||||
Total Current Liabilities | 56,069 | 75,025 | 67,337 | 77,400 |
Long-Term Debt | 73,642 | 71,206 | 97,109 | 110,555 |
Long-Term Debt excl Lease Obligations | 70,288 | 68,810 | 97,109 | 110,555 |
Capital and Operating Lease Obligations | 3,354 | 2,396 | 0 | 0 |
Provision for Risks & Charges | 75,010 | 73,667 | 69,345 | 79,766 |
Deferred Tax Liabilities | 1,598 | 8,042 | 8,559 | 15,555 |
Other Liabilities | 11,170 | 15,850 | 23,475 | 24,839 |
Total Liabilities | 217,489 | 243,790 | 265,825 | 308,115 |
Equity | ||||
Preferred Stock (Carrying Value) | 6 | 6 | 6 | 6 |
Common Equity | 35,546 | 28,310 | 30,975 | 64,257 |
Total Shareholders' Equity | 35,552 | 28,316 | 30,981 | 64,263 |
Accumulated Minority Interest | 2,009 | 1,984 | 20,882 | 21,122 |
Total Equity | 37,561 | 30,300 | 51,863 | 85,385 |
Total Liabilities & Shareholders' Equity | 255,050 | 274,090 | 317,688 | 393,500 |
General Electric Company (ticker: GE) | ||||
Simplified Income Statements | ||||
2020 | 2019 | 2018 | 2017 | |
Sales | 79,893 | 95,055 | 121,615 | 120,468 |
Cost of Goods Sold (COGS) incl. D&A | 59,891 | 66,573 | 87,137 | 84,586 |
COGS excluding D&A | 53,873 | 60,978 | 78,913 | 77,227 |
Depreciation & Amortization Expense | 6,018 | 5,595 | 8,224 | 7,359 |
Gross Income | 20,002 | 28,482 | 34,478 | 35,882 |
Research & Development | 2,565 | 3,115 | 4,134 | 4,803 |
Rental Expense | 1,072 | 1,176 | 1,848 | 1,746 |
Other SG&A | 13,304 | 15,431 | 16,989 | 29,534 |
EBIT (Operating Income) | 3,061 | 8,760 | 11,507 | -201 |
Nonoperating Income - Net | 8,962 | -564 | -518 | 1,624 |
Interest Expense | 3,231 | 4,324 | 5,059 | 4,869 |
Unusual Expense - Net | 3,595 | 2,723 | 26,064 | 5,345 |
Pretax Income | 5,197 | 1,149 | -20,134 | -8,791 |
Income Taxes | -475 | 726 | 583 | -3,043 |
Consolidated Net Income | 5,658 | 423 | -20,717 | -5,759 |
Minority Interest | -7 | 7 | -89 | -277 |
Net Income | 5,665 | 416 | -20,628 | -5,482 |
Discontinued Operations | -93 | -211 | -1,737 | -456 |
Preferred Dividends | 474 | 461 | 447 | 436 |
Net Income available to Common | 5,098 | -256 | -22,812 | -6,374 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started