10 11 12 13 14 15 16 Income Statement 4. In the [Inc-V] sheet, complete preparing a common-size" income statement (vertical analysis) for all three fiscal years. In common-size income statements, net sales revenue is 100 percent and every other number is a percentage of sales. Calculate the following values: Note: Tesla labels dollar amounts "Gross Profit" and calculated percentages "Gross Margin". Fiscal 2020 Fiscal 2019 (ended Dec. 31, 2020) (ended Dec 31, 2019) 5. Gross margin percentage 6. Net margin percentage On the [MD+A] worksheet, Tesla provides (rows 24-33) a vertical analysis and horizontal analysis of gross profits. Note: Tesla labels dollar amounts "Gross Profit" and calculated percentages "Gross Margin". Fiscal 2020 Fiscal 2019 (ended Dec 31, 2020) (ended Dec 31, 2019) What was the gross margin (gross profit 7. percent of revenue) from the total Automotive segment? Note: on the CMD+A] worksheet (rows 24-33) Tesla doesn't include the gross margin of just the "Services and Other" segment--probably because it was a loss, which they didn't want to highlight. Instead it provides the total of the Automotive segment combined with the Services and other segment (on rows 28+29). What was the gross margin (gross profit 8. percent of revenue) from the Energy Generation & Storage segment? 18 9 20 L A C D E G Following are excerpts from Tesla's 2020 annual 10-K document, Item 7. Management's Discussion and Analysis Expanded excerpts from the 10-K were also published with the assignment in Canvas Year Ended December 31 2020 2019 2018 2020 vs. 2019 Change 2019 vs. 2018 Change % $ % (Dollars in millions) Total automotive & services and other segment cost of revenue Energy generation and storage segment Total cost of revenues 22,930 1.976 $24,906 19,168 1,341 $20,509 16,054 1,365 $17.419 3,762 635 $4,397 19.6% 47.4% 21.4% 3,114 24 $3,090 19.4% -1.8% 17.7% Gross profit and gross margin Note: Tesla uses the term "gross pront" for the dollar amount in milions), and the term "gross margin for the percentage of revenue Gross profit total automotive $6,977 $4,423 $4,341 $2,554 57.7% $82 1.9% Gross margin total automotive 25.6% 21.2% 23.4% Gross profit total automotive & services and other segment $6,612 $3,879 $3,852 $2,733 70.5% $27 0.7% Gross margin total automotive & services and other segment 22.4% 16.8% 19.4% Gross profit energy generation and storage segment $18 $190 $190 (5172) -90.5% 50 0.0% Gross margin onergy generation and storage segment 0.9% 12.4% 12.2% Total gross profit $6,630 $4,069 + $4,042 $2,561 62.9% $27 0.7% Total gross margin 21.0% 16.6% 18.8% The following excerpts are from pgs 16-17 of the 10% Excorpts pdf file (aboled pgs 4344 in the original 10-K document) Research and Development Expense Research and development $1,491 $1,343 $1,460 $148 11.0% ($117) 8.0% As a percentage of revenues 4.7% 5.5% 6,8% Research and development (R&D) expenses consist primarily of personnel costs for our teams in engineering and research, manufacturing engineering and manufacturing test organizations, prototyping expense, contract and professional services and amortized equipment expenso. R&D expenses increased $148 milion, or 11%, in the year ended December 31, 2020 as compared to the year onded December 31, 2019. The Increase was primarily due to a $62 million increase in expensed materials as we continue to expand our product roadmap. $61 million increase in stock-based compensation expenso primarily related to the issuance of equlty awards in fiscal your 2020 at higher grant date fair values due to our Increased share price, $20 million Increase in facilities, freight and depreciation expenses and a $20 million increase in employee and labor related expenses, R&D expenses as a percentage of revenue decreased from 5.5% to 4.7% in the year ended December 31, 2020 as compared to the year ended December 31, 2019. The decrease is primarily an Increase in total revenues from expanding sales, partially offset by an increase in our R&D expenses as detailed above. Selling, General and Administrative Expense Seling, general and administrative $3,145 $2,646 $2,835 $499 18.9% ($189) 6.7% As a porcentage of revenues 10.0% 10.8% 13.2% Seling, general and administrative ("SG&A") expenses generally consist of personnel and facilities costs related to our stores, marketing, sales, executive finance, human resources, information technology and legal organizations, as well as fees for professional and contract services and litigation settlements. SG&A expenses increased $499 million, or 19%, in the year ended December 31, 2020 as compared to the year ended December 31, 2019. The increase is primarily due to an increase of $625 million in stock-based compensation expense, of which $542 milion was attributable to the 2018 CEO Performance Award, We recorded stock-based compensation expense of $838 million in the year ended December 31, 2020 for the 2018 CEO Performance Award compared to $296 milion in the prior year. Of the expense recorded in fiscal year 2020, $232 million was due to cumulative catch-up expense for the service provided from the grant date when three operational milestones under such award were considered probable of being met and the remaining unamortized expense of $357 million for the first four tranches were recognized upon vesting as the first four market capitalization milestones were achieved (soe Note 14, Equity Incentive Questions MDA Instructions Bal-V Bal-H Inc-V Inc-H Cash Flows Equili Vertical Anas 12 Months Ended Dec 31, 2019 Dec 31, 2020 Dec 31, 2018 $19.952 369 $ 26,184 B3.0 1,052 3.3% 27,216 86.4% 1,994 5.3% 2.306 7.3% 31,536 100.0% 20,831 1,531 2,226 24,578 81.2 35 84,79 6.26 9.1% 100.0% $ 17,632 883 18,515 1,555 1,391 21.461 15,939 459 16,398 1,341 2.770 20.509 19,696 62.5% 563 1.8% 20,259 64.2% 1,976 6.3% 2671 8.5% 24,906 79.0% 5.630 21.0% 13,686 488 14 174 1,365 Tesla, Inc. Consolidated Statements of Operation USD ($) shares in Milan, Sin Mint Revenues Automotive sales Automotive leasing Total automotive revenues Energy generation and storage Services and other Total revenues Cost of revenues Automotive Sales Automotive leasing Total automotive cost of revenues Energy generation and storage Services and other Total cost of revenues Gross profit Operating expenses Research and development Selling general and administrative Restructuring and other Total operating expenses Income (loss) from operations Interest Income Interest expense Other (expense) Income, net Income (loss) before income taxes Provision for income taxes Net Income (loss) Net income (los) attributable to noncontrolling interests and redeemable no controlling interests in subsidiaries 64.9% 1.0% 66.7% 5.5% 11.3% 83.4% 16.6% 1.680 17419 4,042 4069 1.491 3,145 4.7% 10,0% 14.7% 4.636 1,994 30 (748) (122) 1,154 292 5862 6.3% 0.1% (2.4%) (0.4% 3.2% 0.9 1,343 2546 149 4,138 (69) 44 (685) 45 (665) 110 15775) 0.0% 5.5% 10.8% 16.8% (0.3%) 0.2% 12.8%) 0.2% (2.796) 0.4% (329) 1460 2.335 135 4.430 (388) 24 (663) 22 (1.005) 58 ($1,063) (87) 2.79 101 (862) 1975) 721 31 $690 $(8701 5 1976) Net Income (loss) attributable to common stockholders Less: Buy out of noncontrolling interest Net Income (loss) used in computing net income foss) per share of common stock Net Income (los) per share of common stock attributable to 5 common stockholders Basic 7 Diluted Weighted average shares used in computing net income (loss) per share of common stock Basic Diluted 11 $0.74 $0.64 $ 1098) $10.98) $(114) $(114) 993 1,083 887 882 *53 853 11