Cash flows from operating activities: Net loss Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization Stock-based compensation Amortization of discount on convertible debt TESLA INC. Consolidated Statements of Cash Flows (in thousands) Inventory write-downs Loss on disposal of property and equipment Foreign currency transaction (gain) loss Gain on the acquisition of SolarCity Non-cash interest and other operating activities Changes in operating assets and liabilities, net of effect of business combinations Accounts receivable Inventories and operating lease vehicles Prepaid expenses and other current assets MyPower notes receivable Other assets Accounts payable and accrued liabilities Deferred revenue Customer deposits Resale value guarantee Other long-term liabilities Net cash flows from operating activities Cash flows from investing activities: Purchases of property and equipment excluding capital leases, net of sales Purchase of solar energy system, to be leased Purchase of short-term investments and marketable securities Maturities of short-term marketable securities Increase in restricted cash Cash acquired through (used in) business combinations Net cash flows from investing activities Cash flows from financing activities: Proceeds from issuance of common stock in initial public offering Proceeds from issuance of convertible and other debt Repayments of convertible and other debt Collateralized lease borrowing Proceeds from exercise of stock options and other stock issuances Principal payments on capital leases Common stock and debt issuance costs Proceeds from issuance of warrants Proceeds from issuance of common stock in private placements Purchase of convertible note hedges Proceeds from investment by noncontrolling interests in subsidiaries Distributions paid to noncontrolling interests in subsidiaries Net cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period For the Years Ending Decemb 2015 2016 $ (773,046) 947,099 334,225 87,286 65,520 34,633 (29,183) (88,727) (7,775) (216,565) (2,465,703) 56,806 3,468 (52,821) 750,640 382,962 388,361 326,934 132,057 (123,829) (1,280,802) (159,669) 16,667 (206,149) 213,523 $(1,416,430) $1,701,734 2,852,964 (1,857,594) 769,709 163,817 (46,889) (20,042) 201,527 (21,250) 3,743,976 (7,409) 2,196,308 1,196,908 $3,393,216 $ (888,663) 422.590 197,999 72,063 44,940 37,723 55,765 26,373 46,267 (1,573,860) (29,595) (24,362) 263,345 322,203 36,721 442,295 23,697 (524,499) (1,634,850) (26,441) (12,260) $(1,673,551) $ 730,000 318,972 568,745 106,611 (203,780) (17,025) 20,000 1,523,523 (34,278) (708,805) 1,905,713 $1,196,908 a. As this chapter explained, many companies that report net losses on their earnings statements report positive cash flows from operating activities. How do Tesla's net incomes compare to its cash flows from operating Page 689 activities? b. Based only on the information in the statements of cash flows, does Tesla appear to be growing the capacity of its business? Explain. c. In 2016, Tesla paid off $1.9 billion of "convertible and other debt." Where did it get the funds to repay this debt? d. All things considered, based on the information in its statements of cash flows, does Tesla's cash position appear to be improving or deteriorating?