How can a firm have negative equity

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Question: Find the Missing Numbers in Financial Statements: General Motors Corporation (Medium) General Motors ended its 2007 year (prior to its bankruptcy) with shareholders' equity of -$37,094 million (yes, negative equity!). Six months later, at June 30, 2008, it reported -$56,990 million in equity after paying a dividend of $283 million to shareholders. There were no other transactions with shareholders.

a. What was comprehensive income for the six months?

b. The income statement reported a loss of $18, 722 million for the six months. What was "other comprehensive income"?

c. Total expense and other losses in the income statement, including taxes, were $60,895 million. What was revenue for the six months?

d. The firm reported $148,883 million of total assets at the end of 2007 and $136,046 at June 30, 2008. What were total liabilities at these two dates?

e. How can a firm have negative equity?

Reference no: EM131486960

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