Case study,

While you were having your morning coffee, your boss handed you General Electric Company (GE)'s 2004 financial statements and selected notes thereto and asked you to compute a set of financial ratios. With a tone of urgency in her voice, she added, "I would appreciate it very much if you can get me those in a couple of hours." Just before you started, you inadvertently spilled your coffee on GE's statements obliterating certain figures and some narratives. Those are designated by ** on GE'S statements shown below. QUESTIONS Because of the urgency of the situation, you decided to use your general accounting background and your knowledge of the interrelationships among the statements and notes thereto in an attempt to derive all the figures and narratives obliterated by the coffee. You decided to start with the statement of earnings, then the statement of financial position, and finally the statement of cash flows. You decided to derive the missing figures on selected notes related to a statement and to figure out the missing narratives on each statement at the same time you were working on that particular statement. You also decided to keep a clear trail of how you derived each missing figure, just in case you have to refer to it in the future. Note to students: To save time, you may want to put your solution right in the book. Then you can make a copy and hand it in. *GE classifies its activities into six major businesses, each of which is independently managed and has its own internal major divisions: GE Commercial Finance, GE Consumer Finance, GE Industrial, GE Infrastructure, GE Healthcare, and NBC Universal. General Electric Company and Consolidated Affiliates Partial 2004 Annual Report STATEMENT OF EARNINGS General Electric Company and consolidated as Rosa For the years ended December 31 (n milions pareban amounts in dolary) $ $ 55.00 2119 1013 1064 19,154 3710 14017 12.03 14023 10.151 17 608 3.0 3.72 REVENUES Sales of goods Sales of services Other income note 2) Earrings of GECS before accounting changes GECS revenues from services Totale COSTS AND EXPENSES (note 4) goodswold Costoso Interest and other financial charges Insurance losses and policyholder and annuly benefits Provision for losses on financing relaties (note 13) Other costs and expenses Minority interest in not eamings of consolidated affiliates Total costs and experts EARNINGS BEFORE AND ACCOUNTING CHANGES Provision for controle EARNINGS BEFORE ACCOUNTING CHANGES Cumulative effect of accounting charges incte 1) NET EARNINGS Por share amounts (note & Perche amounts before accounting charges Diluted comingsperare Porshare amounts after accounting charges Basic camins per share Diutadamingsperare 3. 3.10 900 310 113254 20.450 20201 3.790 5823 (2015) 1615 12 1575 151 151 141 14 0.73 DIVIDENDS DECLARED PER SHARE 0.775 CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY 2004 2003 2002 $ 798315 10.000 540195 5.520) 55.000 16.382 inions) CHANGES IN SHAREOWNERS' EQUITY (note 24) Blog try1 Dividends and other transactions with shareowners Cargos other than transactions with someowners Increase trbutable to nel camings Investment store Currency translation adjustments-net Cash fow hedges-net Minimum persone labilities-net Total changes her than transactions we shareuniors Balance at December 31 16.30 412 438 (421) 21.181 710 5.000 226 (161) 21.072 79615 14.107 1378 985 (1.004) 05 15.451 407 $ The notes to consolidated financial statements on pages 64-125 are an integral part of this statements. General Congrand ASSETS $ 135 479 2.778 1072 Francine 123 rancane 16 O GECS 2741 NG 1.450 17530 15343 11.30 4051 12:43 LIABILITIES AND EQUITY Shormonowing not 18) Accounts payat Peye colors and presenter Dividers payah Aotearendence Longterm borowing inte Parceir wd andyberete Ncher les route 20) Dutered nome 20 Minority interesherslo modesta 27 Common Hounding Acasada Inver Currency to use Confo Minimum pension Tables One Redige Secondary 2954 850 (1223) ST (20) 41411 The main reytin od now changer than a shown in te 2 and 238 and The rest od francia son pas part of this statement 1015 2.400 5370 w STATEMENT OF CASH FLOWS CASH FLOW-OPERATING ACTIVITIES trongering Cursou coucher Deloredre Desene DIGE eiere Forside honorando Alterserang advies CAST FROM OR RATING ACTIVITIES Additional de CASH FLOWS INVESTING AGIMTIES Decoliose reg. plantendo Pasterpieces Alternating de LEATORIAME YINGRES CASH FLOWS-FINANCING ACTIVITIES Peter softwares Newlywed longer a day Proyed the redding and Divided Arnar CARACOLLINANCING ACTIVITES INCREASE DECREASE INCASTRO EU MALENS DURING YEAR 361 10 18 9.454 30 SEM 9 4 (15) 11870 21.00 (31 250 (17) . 0.041 67545 Tas 7.10) 02:15 250 2.500 471 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Caspar Gwry the years S 10 Note 11 Inventories December 31 in ons 2004 2003 GE $ 5,042 $ Raw materials and work in process Fnished goods Unbilled shipments 4,530 4,378 281 402 10.250 Loss revaluation to LIFO (632 8,555 9,589 GECS Fnished goods Total 197 189 9,778 $ . $ As of December 31, 2004, we were obligated to acquire certain raw materials at market prices through the year 2023 under various take-or-pay or similar arrangements. Annual minimum commitments under these arrangements are insignificant Note 12 GECS Financing Receivables (investments in time sales, loans and fnancing leases) (Rostated) December 31 miliona 2000 Time sales and loans, net of deferred income $ 220,583 $ 189,050 Investment in financing lases, not offered income 65 320 288,347 Loss allowance for losses (note 13) (6.256 Francing receivables-net $262.689 $ 2004 . COMMERCIAL FINANCE E Commercial and industrial SOS 35.035 3 CONSJUER FINANCE Nous ne revolving credit Non-U.S. U.S.ment and revolving cream Other EQUIPMENT OTHER FRUGT 18:54 32 Property. Plant and Equipment ORIGINAL COST GE Land and improvements Buildings, and went Machinery and Leasehold costs and mercing plant under construction SICS Buildings and 24154 500 Vehicles Ratring Mobile and more Construction and manufacturing To NET CARRYING VALUE GE Land and improvements Buddings structures and related equipment Machinery and Leasehold cotta and are part under construction GEOS Buildings and Endothers 27 Mobile and more Construction and manufacturing TE Note 2004 Good Capitained 55.775 5 20.30 7051 GEGS Goodwill Present value of PVP 416 21527 24 Al Other 2003 mente Amador 5 5.804 . Contract and dring Logo Induding 3,04 15 190 304 15.5 Ametoa Securelding 7 LEVERYONE Somowing SHORT-TERM BORROWINGS NUS Payable to banks, pray 2.72 Current portion of longtem. 14 50 EN ELIM NATIONS LONG-TERM BORROWINGS 2004 Average rate December 31 (Dollars in millions) GE Senior notes Industrial development pollution control bonds Payable to banks, principally U.S." Othere 5.00% 2.28 3.42 Maturities 2004 2003 2013 $ 4,984 $ 7,483 2006-2027 307 331 2006-2018 1,927 212 362 7,625 8,388 GECS Senior notes Unsecured Assel-backed Extendible notes Subordinated notes" ELIMINATIONS Total 3.87 4.15 2.40 744 2006-2055 2006-2035 2007-2009 2006-2035 179,692 10,939 14,258 1,119 206,008 (963) 148,701 1,948 12,591 164,502 (924) $ 171,966 General Electric Company and Consolidated Affiliates Partial 2004 Annual Report STATEMENT OF EARNINGS General Electric Company and consolidated as Rosa For the years ended December 31 (n milions pareban amounts in dolary) $ $ 55.00 2119 1013 1064 19,154 3710 14017 12.03 14023 10.151 17 608 3.0 3.72 REVENUES Sales of goods Sales of services Other income note 2) Earrings of GECS before accounting changes GECS revenues from services Totale COSTS AND EXPENSES (note 4) goodswold Costoso Interest and other financial charges Insurance losses and policyholder and annuly benefits Provision for losses on financing relaties (note 13) Other costs and expenses Minority interest in not eamings of consolidated affiliates Total costs and experts EARNINGS BEFORE AND ACCOUNTING CHANGES Provision for controle EARNINGS BEFORE ACCOUNTING CHANGES Cumulative effect of accounting charges incte 1) NET EARNINGS Por share amounts (note & Perche amounts before accounting charges Diluted comingsperare Porshare amounts after accounting charges Basic camins per share Diutadamingsperare 3. 3.10 900 310 113254 20.450 20201 3.790 5823 (2015) 1615 12 1575 151 151 141 14 0.73 DIVIDENDS DECLARED PER SHARE 0.775 CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY 2004 2003 2002 $ 798315 10.000 540195 5.520) 55.000 16.382 inions) CHANGES IN SHAREOWNERS' EQUITY (note 24) Blog try1 Dividends and other transactions with shareowners Cargos other than transactions with someowners Increase trbutable to nel camings Investment store Currency translation adjustments-net Cash fow hedges-net Minimum persone labilities-net Total changes her than transactions we shareuniors Balance at December 31 16.30 412 438 (421) 21.181 710 5.000 226 (161) 21.072 79615 14.107 1378 985 (1.004) 05 15.451 407 $ The notes to consolidated financial statements on pages 64-125 are an integral part of this statements. General Congrand ASSETS $ 135 479 2.778 1072 Francine 123 rancane 16 O GECS 2741 NG 1.450 17530 15343 11.30 4051 12:43 LIABILITIES AND EQUITY Shormonowing not 18) Accounts payat Peye colors and presenter Dividers payah Aotearendence Longterm borowing inte Parceir wd andyberete Ncher les route 20) Dutered nome 20 Minority interesherslo modesta 27 Common Hounding Acasada Inver Currency to use Confo Minimum pension Tables One Redige Secondary 2954 850 (1223) ST (20) 41411 The main reytin od now changer than a shown in te 2 and 238 and The rest od francia son pas part of this statement 1015 2.400 5370 w STATEMENT OF CASH FLOWS CASH FLOW-OPERATING ACTIVITIES trongering Cursou coucher Deloredre Desene DIGE eiere Forside honorando Alterserang advies CAST FROM OR RATING ACTIVITIES Additional de CASH FLOWS INVESTING AGIMTIES Decoliose reg. plantendo Pasterpieces Alternating de LEATORIAME YINGRES CASH FLOWS-FINANCING ACTIVITIES Peter softwares Newlywed longer a day Proyed the redding and Divided Arnar CARACOLLINANCING ACTIVITES INCREASE DECREASE INCASTRO EU MALENS DURING YEAR 361 10 18 9.454 30 SEM 9 4 (15) 11870 21.00 (31 250 (17) . 0.041 67545 Tas 7.10) 02:15 250 2.500 471 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Caspar Gwry the years S 10 Note 11 Inventories December 31 in ons 2004 2003 GE $ 5,042 $ Raw materials and work in process Fnished goods Unbilled shipments 4,530 4,378 281 402 10.250 Loss revaluation to LIFO (632 8,555 9,589 GECS Fnished goods Total 197 189 9,778 $ . $ As of December 31, 2004, we were obligated to acquire certain raw materials at market prices through the year 2023 under various take-or-pay or similar arrangements. Annual minimum commitments under these arrangements are insignificant Note 12 GECS Financing Receivables (investments in time sales, loans and fnancing leases) (Rostated) December 31 miliona 2000 Time sales and loans, net of deferred income $ 220,583 $ 189,050 Investment in financing lases, not offered income 65 320 288,347 Loss allowance for losses (note 13) (6.256 Francing receivables-net $262.689 $ 2004 . COMMERCIAL FINANCE E Commercial and industrial SOS 35.035 3 CONSJUER FINANCE Nous ne revolving credit Non-U.S. U.S.ment and revolving cream Other EQUIPMENT OTHER FRUGT 18:54 32 Property. Plant and Equipment ORIGINAL COST GE Land and improvements Buildings, and went Machinery and Leasehold costs and mercing plant under construction SICS Buildings and 24154 500 Vehicles Ratring Mobile and more Construction and manufacturing To NET CARRYING VALUE GE Land and improvements Buddings structures and related equipment Machinery and Leasehold cotta and are part under construction GEOS Buildings and Endothers 27 Mobile and more Construction and manufacturing TE Note 2004 Good Capitained 55.775 5 20.30 7051 GEGS Goodwill Present value of PVP 416 21527 24 Al Other 2003 mente Amador 5 5.804 . Contract and dring Logo Induding 3,04 15 190 304 15.5 Ametoa Securelding 7 LEVERYONE Somowing SHORT-TERM BORROWINGS NUS Payable to banks, pray 2.72 Current portion of longtem. 14 50 EN ELIM NATIONS LONG-TERM BORROWINGS 2004 Average rate December 31 (Dollars in millions) GE Senior notes Industrial development pollution control bonds Payable to banks, principally U.S." Othere 5.00% 2.28 3.42 Maturities 2004 2003 2013 $ 4,984 $ 7,483 2006-2027 307 331 2006-2018 1,927 212 362 7,625 8,388 GECS Senior notes Unsecured Assel-backed Extendible notes Subordinated notes" ELIMINATIONS Total 3.87 4.15 2.40 744 2006-2055 2006-2035 2007-2009 2006-2035 179,692 10,939 14,258 1,119 206,008 (963) 148,701 1,948 12,591 164,502 (924) $ 171,966 While you were having your morning coffee, your boss handed you General Electric Company (GE)'s 2004 financial statements and selected notes thereto and asked you to compute a set of financial ratios. With a tone of urgency in her voice, she added, "I would appreciate it very much if you can get me those in a couple of hours." Just before you started, you inadvertently spilled your coffee on GE's statements obliterating certain figures and some narratives. Those are designated by ** on GE'S statements shown below. QUESTIONS Because of the urgency of the situation, you decided to use your general accounting background and your knowledge of the interrelationships among the statements and notes thereto in an attempt to derive all the figures and narratives obliterated by the coffee. You decided to start with the statement of earnings, then the statement of financial position, and finally the statement of cash flows. You decided to derive the missing figures on selected notes related to a statement and to figure out the missing narratives on each statement at the same time you were working on that particular statement. You also decided to keep a clear trail of how you derived each missing figure, just in case you have to refer to it in the future. Note to students: To save time, you may want to put your solution right in the book. Then you can make a copy and hand it in. *GE classifies its activities into six major businesses, each of which is independently managed and has its own internal major divisions: GE Commercial Finance, GE Consumer Finance, GE Industrial, GE Infrastructure, GE Healthcare, and NBC Universal. General Electric Company and Consolidated Affiliates Partial 2004 Annual Report STATEMENT OF EARNINGS General Electric Company and consolidated as Rosa For the years ended December 31 (n milions pareban amounts in dolary) $ $ 55.00 2119 1013 1064 19,154 3710 14017 12.03 14023 10.151 17 608 3.0 3.72 REVENUES Sales of goods Sales of services Other income note 2) Earrings of GECS before accounting changes GECS revenues from services Totale COSTS AND EXPENSES (note 4) goodswold Costoso Interest and other financial charges Insurance losses and policyholder and annuly benefits Provision for losses on financing relaties (note 13) Other costs and expenses Minority interest in not eamings of consolidated affiliates Total costs and experts EARNINGS BEFORE AND ACCOUNTING CHANGES Provision for controle EARNINGS BEFORE ACCOUNTING CHANGES Cumulative effect of accounting charges incte 1) NET EARNINGS Por share amounts (note & Perche amounts before accounting charges Diluted comingsperare Porshare amounts after accounting charges Basic camins per share Diutadamingsperare 3. 3.10 900 310 113254 20.450 20201 3.790 5823 (2015) 1615 12 1575 151 151 141 14 0.73 DIVIDENDS DECLARED PER SHARE 0.775 CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY 2004 2003 2002 $ 798315 10.000 540195 5.520) 55.000 16.382 inions) CHANGES IN SHAREOWNERS' EQUITY (note 24) Blog try1 Dividends and other transactions with shareowners Cargos other than transactions with someowners Increase trbutable to nel camings Investment store Currency translation adjustments-net Cash fow hedges-net Minimum persone labilities-net Total changes her than transactions we shareuniors Balance at December 31 16.30 412 438 (421) 21.181 710 5.000 226 (161) 21.072 79615 14.107 1378 985 (1.004) 05 15.451 407 $ The notes to consolidated financial statements on pages 64-125 are an integral part of this statements. General Congrand ASSETS $ 135 479 2.778 1072 Francine 123 rancane 16 O GECS 2741 NG 1.450 17530 15343 11.30 4051 12:43 LIABILITIES AND EQUITY Shormonowing not 18) Accounts payat Peye colors and presenter Dividers payah Aotearendence Longterm borowing inte Parceir wd andyberete Ncher les route 20) Dutered nome 20 Minority interesherslo modesta 27 Common Hounding Acasada Inver Currency to use Confo Minimum pension Tables One Redige Secondary 2954 850 (1223) ST (20) 41411 The main reytin od now changer than a shown in te 2 and 238 and The rest od francia son pas part of this statement 1015 2.400 5370 w STATEMENT OF CASH FLOWS CASH FLOW-OPERATING ACTIVITIES trongering Cursou coucher Deloredre Desene DIGE eiere Forside honorando Alterserang advies CAST FROM OR RATING ACTIVITIES Additional de CASH FLOWS INVESTING AGIMTIES Decoliose reg. plantendo Pasterpieces Alternating de LEATORIAME YINGRES CASH FLOWS-FINANCING ACTIVITIES Peter softwares Newlywed longer a day Proyed the redding and Divided Arnar CARACOLLINANCING ACTIVITES INCREASE DECREASE INCASTRO EU MALENS DURING YEAR 361 10 18 9.454 30 SEM 9 4 (15) 11870 21.00 (31 250 (17) . 0.041 67545 Tas 7.10) 02:15 250 2.500 471 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Caspar Gwry the years S 10 Note 11 Inventories December 31 in ons 2004 2003 GE $ 5,042 $ Raw materials and work in process Fnished goods Unbilled shipments 4,530 4,378 281 402 10.250 Loss revaluation to LIFO (632 8,555 9,589 GECS Fnished goods Total 197 189 9,778 $ . $ As of December 31, 2004, we were obligated to acquire certain raw materials at market prices through the year 2023 under various take-or-pay or similar arrangements. Annual minimum commitments under these arrangements are insignificant Note 12 GECS Financing Receivables (investments in time sales, loans and fnancing leases) (Rostated) December 31 miliona 2000 Time sales and loans, net of deferred income $ 220,583 $ 189,050 Investment in financing lases, not offered income 65 320 288,347 Loss allowance for losses (note 13) (6.256 Francing receivables-net $262.689 $ 2004 . COMMERCIAL FINANCE E Commercial and industrial SOS 35.035 3 CONSJUER FINANCE Nous ne revolving credit Non-U.S. U.S.ment and revolving cream Other EQUIPMENT OTHER FRUGT 18:54 32 Property. Plant and Equipment ORIGINAL COST GE Land and improvements Buildings, and went Machinery and Leasehold costs and mercing plant under construction SICS Buildings and 24154 500 Vehicles Ratring Mobile and more Construction and manufacturing To NET CARRYING VALUE GE Land and improvements Buddings structures and related equipment Machinery and Leasehold cotta and are part under construction GEOS Buildings and Endothers 27 Mobile and more Construction and manufacturing TE Note 2004 Good Capitained 55.775 5 20.30 7051 GEGS Goodwill Present value of PVP 416 21527 24 Al Other 2003 mente Amador 5 5.804 . Contract and dring Logo Induding 3,04 15 190 304 15.5 Ametoa Securelding 7 LEVERYONE Somowing SHORT-TERM BORROWINGS NUS Payable to banks, pray 2.72 Current portion of longtem. 14 50 EN ELIM NATIONS LONG-TERM BORROWINGS 2004 Average rate December 31 (Dollars in millions) GE Senior notes Industrial development pollution control bonds Payable to banks, principally U.S." Othere 5.00% 2.28 3.42 Maturities 2004 2003 2013 $ 4,984 $ 7,483 2006-2027 307 331 2006-2018 1,927 212 362 7,625 8,388 GECS Senior notes Unsecured Assel-backed Extendible notes Subordinated notes" ELIMINATIONS Total 3.87 4.15 2.40 744 2006-2055 2006-2035 2007-2009 2006-2035 179,692 10,939 14,258 1,119 206,008 (963) 148,701 1,948 12,591 164,502 (924) $ 171,966 General Electric Company and Consolidated Affiliates Partial 2004 Annual Report STATEMENT OF EARNINGS General Electric Company and consolidated as Rosa For the years ended December 31 (n milions pareban amounts in dolary) $ $ 55.00 2119 1013 1064 19,154 3710 14017 12.03 14023 10.151 17 608 3.0 3.72 REVENUES Sales of goods Sales of services Other income note 2) Earrings of GECS before accounting changes GECS revenues from services Totale COSTS AND EXPENSES (note 4) goodswold Costoso Interest and other financial charges Insurance losses and policyholder and annuly benefits Provision for losses on financing relaties (note 13) Other costs and expenses Minority interest in not eamings of consolidated affiliates Total costs and experts EARNINGS BEFORE AND ACCOUNTING CHANGES Provision for controle EARNINGS BEFORE ACCOUNTING CHANGES Cumulative effect of accounting charges incte 1) NET EARNINGS Por share amounts (note & Perche amounts before accounting charges Diluted comingsperare Porshare amounts after accounting charges Basic camins per share Diutadamingsperare 3. 3.10 900 310 113254 20.450 20201 3.790 5823 (2015) 1615 12 1575 151 151 141 14 0.73 DIVIDENDS DECLARED PER SHARE 0.775 CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY 2004 2003 2002 $ 798315 10.000 540195 5.520) 55.000 16.382 inions) CHANGES IN SHAREOWNERS' EQUITY (note 24) Blog try1 Dividends and other transactions with shareowners Cargos other than transactions with someowners Increase trbutable to nel camings Investment store Currency translation adjustments-net Cash fow hedges-net Minimum persone labilities-net Total changes her than transactions we shareuniors Balance at December 31 16.30 412 438 (421) 21.181 710 5.000 226 (161) 21.072 79615 14.107 1378 985 (1.004) 05 15.451 407 $ The notes to consolidated financial statements on pages 64-125 are an integral part of this statements. General Congrand ASSETS $ 135 479 2.778 1072 Francine 123 rancane 16 O GECS 2741 NG 1.450 17530 15343 11.30 4051 12:43 LIABILITIES AND EQUITY Shormonowing not 18) Accounts payat Peye colors and presenter Dividers payah Aotearendence Longterm borowing inte Parceir wd andyberete Ncher les route 20) Dutered nome 20 Minority interesherslo modesta 27 Common Hounding Acasada Inver Currency to use Confo Minimum pension Tables One Redige Secondary 2954 850 (1223) ST (20) 41411 The main reytin od now changer than a shown in te 2 and 238 and The rest od francia son pas part of this statement 1015 2.400 5370 w STATEMENT OF CASH FLOWS CASH FLOW-OPERATING ACTIVITIES trongering Cursou coucher Deloredre Desene DIGE eiere Forside honorando Alterserang advies CAST FROM OR RATING ACTIVITIES Additional de CASH FLOWS INVESTING AGIMTIES Decoliose reg. plantendo Pasterpieces Alternating de LEATORIAME YINGRES CASH FLOWS-FINANCING ACTIVITIES Peter softwares Newlywed longer a day Proyed the redding and Divided Arnar CARACOLLINANCING ACTIVITES INCREASE DECREASE INCASTRO EU MALENS DURING YEAR 361 10 18 9.454 30 SEM 9 4 (15) 11870 21.00 (31 250 (17) . 0.041 67545 Tas 7.10) 02:15 250 2.500 471 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Caspar Gwry the years S 10 Note 11 Inventories December 31 in ons 2004 2003 GE $ 5,042 $ Raw materials and work in process Fnished goods Unbilled shipments 4,530 4,378 281 402 10.250 Loss revaluation to LIFO (632 8,555 9,589 GECS Fnished goods Total 197 189 9,778 $ . $ As of December 31, 2004, we were obligated to acquire certain raw materials at market prices through the year 2023 under various take-or-pay or similar arrangements. Annual minimum commitments under these arrangements are insignificant Note 12 GECS Financing Receivables (investments in time sales, loans and fnancing leases) (Rostated) December 31 miliona 2000 Time sales and loans, net of deferred income $ 220,583 $ 189,050 Investment in financing lases, not offered income 65 320 288,347 Loss allowance for losses (note 13) (6.256 Francing receivables-net $262.689 $ 2004 . COMMERCIAL FINANCE E Commercial and industrial SOS 35.035 3 CONSJUER FINANCE Nous ne revolving credit Non-U.S. U.S.ment and revolving cream Other EQUIPMENT OTHER FRUGT 18:54 32 Property. Plant and Equipment ORIGINAL COST GE Land and improvements Buildings, and went Machinery and Leasehold costs and mercing plant under construction SICS Buildings and 24154 500 Vehicles Ratring Mobile and more Construction and manufacturing To NET CARRYING VALUE GE Land and improvements Buddings structures and related equipment Machinery and Leasehold cotta and are part under construction GEOS Buildings and Endothers 27 Mobile and more Construction and manufacturing TE Note 2004 Good Capitained 55.775 5 20.30 7051 GEGS Goodwill Present value of PVP 416 21527 24 Al Other 2003 mente Amador 5 5.804 . Contract and dring Logo Induding 3,04 15 190 304 15.5 Ametoa Securelding 7 LEVERYONE Somowing SHORT-TERM BORROWINGS NUS Payable to banks, pray 2.72 Current portion of longtem. 14 50 EN ELIM NATIONS LONG-TERM BORROWINGS 2004 Average rate December 31 (Dollars in millions) GE Senior notes Industrial development pollution control bonds Payable to banks, principally U.S." Othere 5.00% 2.28 3.42 Maturities 2004 2003 2013 $ 4,984 $ 7,483 2006-2027 307 331 2006-2018 1,927 212 362 7,625 8,388 GECS Senior notes Unsecured Assel-backed Extendible notes Subordinated notes" ELIMINATIONS Total 3.87 4.15 2.40 744 2006-2055 2006-2035 2007-2009 2006-2035 179,692 10,939 14,258 1,119 206,008 (963) 148,701 1,948 12,591 164,502 (924) $ 171,966