Business : Tesla

• Financial Statement(s): Explain the various financial statement(s) needed to calculate a businesss working capital and how each financial statement is used. Provide examples to support your claims.

• Working Capitals Role: Discuss how effective working capital management supports a healthy business.

• Working Capital Interpretation: Use the appropriate formula to calculate working capital, then discuss the businesss current financial liquidity position.
  • For example, does the business have sufficient working capital on hand to address bills to suppliers? Will there be potential cash inflow at the end of the year?

• Working Capital Management Direction: Discuss the current direction of the business regarding working capital management.
  • Keep in mind that financial statements reflect a specific moment or period of time and the value of the businesss working capital during that period. To get a better understanding of the direction in which a business is going, use the businesss balance sheets from Mergent Online to compare the businesss value today against its value from one year ago.