General Electric (GE) is one of the largest and most diversified industrial corporations in the world. GEs

Question:

General Electric (GE) is one of the largest and most diversified industrial corporations in the world. GE€™s products include major appliances, lighting products, medical diagnostic imaging equipment, motors, locomotives, and commercial and military aircraft jet engines. Through the National Broadcasting Company (NBC), GE offers network television services, operates television stations, and provides cable, Internet, and programming services. Through General Electric Capital Services (GECS), GE offers consumer financing, commercial and industrial financing, real estate financing, asset management and leasing, mortgage services, and insurance services.
For the years ending December 31, 2004 and 2003, GE reported the following data (in millions):

1. Compute the accounts receivable turnover for GE, excluding GECS, for 2004. Use net accounts receivable and round to one decimal place in your computations.
2. Compute the accounts receivable turnover for GECS for 2004. Use net accounts receivable and round to one decimal place in your computations.
3. Comment on the interpretation of the accounts receivable turnover for GECS.
4. As of December 31, 2004 and 2003, compute the percent of the allowance for doubtful accounts to total accounts receivable for GE, without GECS. Round to one decimal place.
5. As of December 31, 2004 and 2003, compute the percent of the allowance for doubtful accounts to total accounts receivable for GECS. Round to one decimal place.
6. Compare (4) and (5) and explain why one percentage is higher than theother.