b. Provide the Accounting Equation for Tesla, as of December 31, 2020.

c. Who are the auditors of Tesla? Who is responsible for the preparation of Tesla's financial statements? In auditing Tesla's 2020 financial statements, were there any particular accounts or transactions that Tesla's auditor believed involved especially challenging and complex judgments? If yes, what were these issues?

d. Which two Assets that Tesla controls had the largest dollar increase between December 31, 2019 and December 31, 2020?

f. By how much did Tesla's revenue grow between 2019 and 2020 (in dollars and percentages)? What source (type) of revenue grew most (percentage wise)?

g. What was Tesla's total gross profit margin for 2020? Which source (type) of revenue had the highest gross profit margin?

h. Calculate Tesla's Return on Equity (ROE) for 2020, and break it down to its components, using the Du-Pont method. Use average balances when possible. What was Tesla's Basic Earnings Per Share (EPS) for 2020? Could you identify a quarter where the EPS was positive?

i. What are Tesla's operating segments? Which segment generated the largest proportion of sales in 2020? Does this segment also have the highest gross profit margin? In what geographic area did Tesla's dollar revenues increase the most?

j. Which of the three statement of cash flows components provided the most cash during fiscal year 2020, and how much? Overall, which line-item was the largest cash provider for Tesla during 2020? Tesla's statement of cash flows includes an adjustment of $180 million dollars associated with "amortization of debt discounts and issuance costs." What does this adjustment reflect and why is it made?

k. How does Tesla recognize sales of new cars when there is no resale value guarantee? How are potential sales returns for new cars without resale value guarantees accounted for?

l. On January 1, 2020, Tesla sold a Model 3 for $65,000 to a customer who paid cash upon delivery. The sales contract also included access to Tesla's add-on options including the Supercharger network, internet connectivity, Autopilot Full Self-driving features, and overthe-air software updates. The allocated transaction price for the add-on services was estimated to be $10,000. Tesla did not provide a resale value guarantee or buyback option. Record this hypothetical sale of a Model 3 using either the accounting equation or a journal entry. Ignore potential sales returns and taxes and the recognition of the cost of goods sold.

m. Why does Tesla record warranty costs for future car repairs? What was the warranty expense recorded in 2020? What was the cost of warranty repairs in 2020?

n. Did Tesla report any intangible assets in 2020? If yes, what was the gross and net amount of intangible assets reported? What was the amortization expense for 2020? Does the brand name "Tesla" appear on, or its value included in, Tesla's balance sheet? Why?

o. Which cost-flow assumption does Tesla use to record its inventory: LIFO or FIFO? If prices of inputs are decreasing, how does their cost-flow assumption affect the amount of cost of goods sold and inventory in 2020, relative to the alternative approach?

p. Provide the dollar amount and the percentage of revenue for Tesla's research and development for 2018 (not a typo - 2018 is intended) and 2020.

q. What was Tesla's depreciation expense for 2020? Assume that 50% of the accumulated depreciation, as of December 31, 2020, on property, plant, and equipment relates to machinery, equipment, vehicles and office furniture. Also assume that the average useful life of these assets is seven years, and they have no salvage value. What is the average age of Tesla's machinery, equipment, vehicles and office furniture as of December 31, 2020?

r. What was Tesla's total balance of long-term debt and finance leases as of December 31, 2020? How much of this obligation was expected to become due by December 31, 2021?

s. During a semester where we used Zoom way too often, what was the most interesting/bizarre non-academic item you have observed on Zoom?

t. In August 2017, Tesla issued notes due in August 2025 ("2025 Notes"). What is the (i) aggregate principal amount, and (ii) the contractual interest rate on these notes? Were these notes issued at par, premium, or discount?

u. What was Tesla's income tax expense for 2020? Provide the journal entry that summarizes Tesla's income tax expense for 2020. How much cash did Tesla pay for income taxes during 2020?

v. What line-item is the source for Tesla's largest deferred tax liability? What is the deferred tax liability associated with this item? What line-item is the source for Tesla's largest deferred tax asset? What portion of the total deferred tax assets Tesla's management believes that it is more likely than not it will not be realized?

w. A Judgment Question. After reading Tesla's 2020 annual report, an analyst in the automotive industry concluded that Tesla is a bad investment because the firm has been reporting losses over the two of the past three years. What do you think about this conclusion? Do you observe any irregularity or a reason to be concerned regarding its financial reporting policies? Any comment on Tesla's quality of reporting? (Only a short answer is required here - up to 10 lines.)

Refer to the file named Tesla10K2020 (https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm). 2. The use of the terms "during 2020," "in 2020," or "fiscal 2020," means during the fiscal year 2020, that ends on December 31, 2020. The same applies for other years.