Answer the questions in the word and fill in the excel.

There are many questions but should not be hard. Just look at the 10-K of Tesla and there are hints in the questions.

1. Use SEC EDGAR (www.sec.gov) to download the three most recent Form 10-Ks for TESLA.

2. Use the Form 10-Ks and the financial statements along with any other information available online to obtain background information about the company and to assess the company’s business environment. The goal is to understand the overall business environment of the company so that you can assess its financial statements in a broader business context. Provide a summary of your findings in this deliverable.

3. Use the Form 10-Ks to explore the financial statements of the company and familiarize yourself with its basics.

Answer the following questions and include the answers in your deliverable:

a. What accounting standards are used, U.S. GAAP, IFRS or other?

b. What is the date of the most recent fiscal year-end?

c. What is the relative proportion of short-term and long-term assets?

d. What is the relative proportion of liabilities and equity?

e. What is the return on assets (ROA) for the most recent year?

f. Find the company’s audit report. Who are the auditors? Are there any concerns raised in the reports?

4. Using the Excel worksheet provided separately, prepare a three-year common size balance sheet for the company, and include a copy in your deliverable. Once you have completed the common size balance sheets, answer the following questions and include the answers in your deliverable:

a. What is the company’s largest asset category? Largest liability category?

b. What proportion of total assets is financed by owners (compare with total equity)?

c. What proportion of total assets is financed by nonowners (compare with total liabilities)?

d. Based on your review of the common size balance sheet for the company, what significant trends and changes did you notice? Why do you think they occurred?

5. Using the Excel worksheet provided separately, prepare a three-year common size income statement for the company, and include a copy in your deliverable. Once you have completed the common size income statement, answer the following questions and include the answers in your deliverable:

a. What is the company’s major revenue item?

b. What is the company’s major expense?

c. Was the company more or less profitable when compared to the prior year?

d. Based on your review of the common size income statement for the company, what significant trends and changes did you notice? Why do you think they occurred?

6. Use the company’s most recent Form 10-K to determine the size and direction (cash source or use) of cash flows from operations, investing and financing, with the goal of understanding the company’s pattern of cash flows and to form an opinion about the general strength of its cash flows. Answer the following questions and include the answers in your deliverable:

a. What was the company’s cash flows from operations? Were they positive?

b. Did the company purchase new property and equipment (“capital expenditures”) during the year?

c. Did the company issue new debt during the year or was debt repaid?

d. Did the company issue new stock?

e. Did the company pay dividends?