Gain an understanding of the Electric Car Industry via library research.

Review the financial statements at a high level keeping in mind some of the following links in accounts. Review the Balance Sheet Items 1. A decline in cash and cash equivalents as a percentage of total assets possible indicator of potential liquidity issues. 2. Receivables growing at a high rate current or future liquidity issue or false revenues or early revenue recognition. 3. Inventory growing indicator of potential liquidity issues 4. Growth in Accounts payable indicator of potential liquidity issues 5. Significant increases in total debt indicator of potential liquidity issues Review key Income Statement items 1. Significant increase or decrease in revenue could indicate fictious or early recognition of revenues 2. Cost of goods sold as a percentage of sales significantly increases potential manipulation of prior period cost of goods sold 3. Sales and general and administrative expenses significantly increase from prior years and/or as a percentage of sales Review key Statement of Cash Flow Analysis 1. How much did an increase in accounts receivable, inventory, and accounts payable balances change cash flow from operating activities? 2. Calculate free cash flow for the three years presented on the statement of cash flow. 3. Review the cash flows from financing activities. What debt items were paid off? What were the sources of cash inflow in the financing section? Required: 1. Read the financial statements for Tesla Use the most recently released 10-K. 2. Make at least three observations based on your review of the financial statements using some of the links listed above. 3. Complete a forecast of the income statement and balance sheet using the percentage of sales process described in the textbook.