Below is a condensed listing of the assets and liabilities of GENERAL MOTORS as of December 31, 1999. All amounts are in millions of U.S. dollars.
|
Assets |
Liabilities |
||
|
Cash |
$21,250 |
Loans payable |
$187,059 |
|
Loans receivable |
80,627 |
Pensions |
3,339 |
|
Inventories |
10,638Other |
retiree benefits |
34,166 |
|
Property & equipment |
69,186 |
Other liabilities |
28,708 |
|
Other assets |
92,572 |
||
|
Total assets |
$274,273 |
Total liabilities |
$253,272 |
1. Among its assets, General Motors lists more than $80 billion in loans receivable. This represents loans that General Motors has made and expects to collect in the future. This is exactly the kind of asset reported among the assets of banks. Given what you know about General Motors business, how do you think the company acquired these loans receivable?
2. The difference between the reported amount of General Motors assets and liabilities is $21.001 billion ($274.273 _ $253.272). What does this difference represent?