Caterpillar Annual Report

1042 WordsJan 22, 20135 Pages
2011 Caterpillar Annual Report Justin Kruse ACC100 Professor Hubbard Strayer University May 24, 2012 2011 Caterpillar Annual Report Most everyone wanted to jump on the investment train this month with the release of Facebook’s Initial Public Offering (IPO). As a matter of fact, many people did buy stock in Facebook, trouble is, most of them will never be able to understand the paperwork they will receive while holding their shares. Every year publicly traded companies distribute what is known as their Annual Report, which is the yearly record of a publicly held company’s financial condition (Harvey). Throughout this paper we will go through Caterpillar’s annual report in an effort to better understand what we are reading. We…show more content…
Caterpillar is a global leader in construction equipment sales and leasing. When we compare a company like Caterpillar to an average car dealer we can see one major difference. Car dealers make their money servicing vehicles where as Caterpillar earns their revenues through sales and leasing. As a matter of fact sales and leasing is the number one asset held by Caterpillar. Retail notes receivable, wholesale notes receivable, finance leases and installment sale contracts (retail), and finance leases and installment sale contracts (wholesale) total nearly $25 billion or eighty-five percent of the company’s total assets (Financial, 2011). The management of Cat Financial is responsible for establishing and maintaining adequate internal control over financial reporting (Financial, 2011). Their internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (Financial, 2011). The internal controls for Caterpillar are set to follow closely to the regulation set by the Securities Exchange Commission (SEC). These internal controls are set to provide a form of transparency for the consumer as well as regulators. They are setup to provide the most accurate and necessary
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