Please follow the steps below to find General Motors (GM) Company's information about GM Financial receivables on its annual financial statement. Then answer the questions. (GM Financial receivables are similar to accounts receivables that we learned at class. For example, when a retail consumer, like you, purchases a GM motor vehicle with a loan from GM Financial, GM records it as GM Financial receivables. In addition, GM Financial also lends money to its dealers so that the dealers can acquire inventory of vehicles from GM. Thus, GM Financial has two types of receivables, retail receivables and commercial receivables.) 1. Open the following web on web browser https://www.sec.gov/edgar/searchedgar/companysearch.html 2. On the upper right side, there is a "Fast Search" box. Type "GM" in the box and click "SEARCH" button. This will lead you to General Motors financial statement filings to Securities and Exchange Commission (SEC). 3. On the upper left side, there is a "Filing Type" box. Type "10-K" and hit "enter" on your keyboard. (10-K reports are annual financial statements that public firms have to file with SEC every fiscal year). 4. Click the "Documents" with filing date of 2019-02-06. This will lead you to GM's 10-K reports for fiscal year 2018 that the firm filed on February 6th, 2019. 5. Click the first document. It is called "gm201810k.htm" in red. 6. Scroll down a little bit to "INDEX" page. You will see a "Note 5. GM Financial Receivables and Transactions" under "Item 8. Financial Statements and Supplementary Data". Click the corresponding page number on the right, which is page 62. Question 1 a. What are the total amounts of GM Financial receivables in 2017 and 2018? Does it increase or decrease? b. What are the allowance for loan losses in 2017 and 2018? Does it increase or decrease? c. In your opinion, should the allowance for loan losses increase or decrease when receivables increase? Question 2 a. Calculate the percentages of total receivables that is estimated to be uncollectible (aka estimated % uncollectible, calculated with allowance for loan losses GM Financial receivables) in 2017 and 2018. b. Compare estimated % uncollectible of total receivables in 2018 and that in 2017. Does it increase or decrease? Is this what you expect? c. Assume that estimated % uncollectible in 2018 should be equal to that in 2017, based on your finding above, will bad debt expenses in 2018 be overstated or understated? Will net income in 2018 be overstated or understated? Question 3 a. Calculate estimated % uncollectible of retail receivables in 2017 and 2018. b. Compare estimated % uncollectible of retail receivables in 2018 and that in 2017. Does it increase or decrease or stay the same? c. Do you think this explains your finding in Question 2.b.? Question 4 a. Calculate estimated % uncollectible of commercial receivables in 2017 and 2018. b. Compare estimated % uncollectible of commercial receivables in 2018 and that in 2017. Does it increase or decrease or stay the same? c. Do you think this explains your finding in Question 2.b.? Question 5 a. Take a look at the first table on page 63. It is similar to accounts receivable aging schedule that we talked about in class. It tells you the amount and percentage of receivables that are more than 30 days pass due (delinquent). What are the percentages that are more than 30 days past due in 2017 and 2018? Does it increase or decrease? b. Do you think this explains your finding in Question 3.b?