Case Study:

Tesla Corporation prepares its financial statements according to U$.$S$.$ GAAP. Tesla$$s financial statements and disclosure notes for the calendar year ended December $31,2022,$ are available under the Investor Relations link at the company$$s website.

Required:

Tesla's Consolidated Statement of Financial Position $($its balance sheet$)$ discloses its current assets and current liabilities. After reviewing Tesla Financial Reports and Disclosures, please answer the following questions:

Give an overview of the company:

When was the company founded?

Who founded Tesla?

Where does the company operates $($Territories$)?$

Number of employees.

What are the three components of Tesla$$s current liabilities?

Are current assets sufficient to cover current liabilities? What is the current ratio for the calendar year ended December $31,2022?$ How does the ratio compare with the prior years?

Why might a company want to avoid having its current ratio be too low? Too high?

Disclosure Note $15$ discusses Tesla's accounting for contingencies. What is Tesla's approach for accruing losses for litigation liabilities? Is their approach appropriate?

In conclusion, what suggested solution will you recommend in order to improve the current ratio of Tesla?

The case study will be covered in class. In order to have a very substantive discussion each student is required to submit a brief of the case study prior to the actual class discussion. The summary response must have a background, comprehensive synthesis, and conclusion of the case. The summary is a $2-3$ page paper submitted to instructor prior to the start of the class. The case brief must be in an APA format. Keep the similarities below $15\%.$ The case brief must be in an APA format $($Follow Syllabus Guidelines$).$ You are allowed submission have three attempts for this case study.