I need the answer to this project. Please

Decompose Tesla's ROE for the annual periods 2012-2014. Note any trends you observe. 2) Tesla notes that Q1 automotive revenue includes $51 million from the sale of ZEV credits.

Attached are 7 questions and the article

Final Examination - ACG6175 CMBA By submitting this examination for grading I affirm that I have not discussed this examination with any other person, nor accessed or employed any information not included in the materials presented below. Required: Write your answers in standard English. Include any computations you make in completing your answers. Be specific. 1) Decompose Tesla's ROE for the annual periods 2012-2014. Note any trends you observe. 2) Tesla notes that Q1 automotive revenue includes $51 million from the sale of ZEV credits.* Assuming that 2012-2014 annual revenues are comprised of the same percentage of ZEV revenues as was the case in Q1 of 2015, re-compute Tesla's income after removing the effect of the ZEV sales and decompose ROE using the revised data. 3) Compare your new calculations to your ROE decomposition from question 1. 4) Comment on the quality of Tesla's earnings. 5) Given that Tesla has consistently generated losses, how has the company managed to survive? Read Tesla's Stockholder Letter for the first quarter of 2015. Tesla repeatedly refers to \"nonGAAP\" results. 6) What are the specific departures Tesla makes from GAAP in computing these numbers? 7) Why do you think the company keeps referring to \"non-GAAP\" measures? *Here's how ZEV (zero emission vehicle) credits work: Every major auto manufacturer in the U.S. is required to sell a given percentage of zero-emission vehicles (by 2025 it will reach 15%). Failure to meet this standard results in a fine. Manufacturers receive zero emission vehicle \"credits\" for each ZEV sold. ZEV sales were, however, only 1% of automotive sales in 2014. This means many manufacturers fall below the threshold. They can, however, buy \"credits\" from other companies in order to keep from paying the fines. Since Tesla only sells ZEVs it has \"extra\" credits that it can sell. Tesla Motors, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) 2014 Revenues Automotive sales Development services Total revenues Cost of revenues Automotive sales Development services Total cost of revenues Gross profit Operating expenses Research and development Selling, general and administrative Total operating expenses Loss from operations Interest income Interest expense Other income (expense), net Loss before income taxes Provision for income taxes Net loss Net loss per share of common stock, basic and diluted Weighted average shares used in computing net loss per share of common stock, basic and diluted Year Ended December 31, 2013 2012 $3,192,723 5,633 3,198,356 $1,997,786 15,710 2,013,496 $385,699 27,557 413,256 2,310,011 6,674 2,316,685 881,671 1,543,878 13,356 1,557,234 456,262 371,658 11,531 383,189 30,067 464,700 603,660 1,068,360 (186,689) 1,126 (100,886) 1,813 231,976 285,569 517,545 (61,283) 189 (32,934) 22,602 273,978 150,372 424,350 (394,283) 288 (254) (1,828) (284,636) 9,404 $(294,040) (71,426) 2,588 $(74,014) (396,077) 136 $(396,213) $(2.36) $(0.62) $(3.69) 124,539,343 119,421,414 107,349,188 $(0.32) $(0.11) Consolidated Balance Sheets (in thousands, except share and per share data) Assets Current assets Cash and cash equivalents Restricted cash and marketable securities Accounts receivable Inventory Prepaid expenses and other current assets Total current assets Operating lease vehicles, net Property, plant and equipment, net Restricted cash Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Deferred revenue Capital lease obligations, current portion Customer deposits Convertible senior notes Total current liabilities Capital lease obligations, less current portion Deferred revenue, less current portion Convertible senior notes, less current portion Resale value guarantee Other long-term liabilities Total liabilities Commitments and contingencies (Note 11) Convertible senior notes (Notes 6) Stockholders' equity: Preferred stock; $0.001 par value; 100,000,000 shares authorized; no shares issued and outstanding Common stock; $0.001 par value; 2,000,000,000 shares authorized as of December 31, 2014 and 2013, respectively; 125,687,607 and 123,090,990 shares issued and outstanding as of December 31, 2014 and 2013, respectively Additional paid-in capital Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity December 31, 2014 December 31, 2013 December 31, 2012 $1,905,713 17,947 226,604 953,675 94,718 3,198,657 766,744 1,829,267 11,374 43,209 $5,849,251 $845,889 3,012 49,109 340,355 27,574 1,265,939 382,425 738,494 6,435 23,637 $2,416,930 $201,890 19,094 26,842 268,504 8,438 524,768 10,071 552,229 5,159 21,963 $1,114,190 $777,946 268,884 191,651 9,532 257,587 601,566 2,107,166 12,267 292,271 1,806,518 487,879 173,244 4,879,345 $303,969 108,252 91,882 7,722 163,153 182 675,160 12,855 181,180 586,119 236,299 58,197 1,749,810 $303,382 39,798 1,905 4,365 138,817 50,841 58,196 - - - 539,108 10,692 9,965 3,060 401,495 25,170 989,490 - 126 2,345,266 (1,433,682) 911,710 $5,849,251 123 1,806,617 (1,139,620) 667,120 $2,416,930 115 1,190,191 (1,065,606) 124,700 $1,114,190 Consolidated Statements of Cash Flows (in thousands) 2014 Cash Flows From Operating Activities Net loss Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization Stock-based compensation Amortization of discount on convertible debt Inventory write-downs loan origination costs Change in fair value of DOE warrant liability Fixed asset disposal Other non-cash operating activities Foreign currency transaction (gain) loss Changes in operating assets and liabilities Accounts receivable Inventories and operating lease vehicles Prepaid expenses and other current assets Other assets Accounts payable Accrued liabilities Deferred revenue Customer deposits Resale value guarantee Other long-term liabilities Net cash provided by (used in) operating activities Cash Flows From Investing Activities Purchases of property and equipment excluding capital leases Withdrawals out of our dedicated DOE account, net (Increase) decrease in other restricted cash Purchases of short-term marketable securities Maturities of short-term marketable securities Net cash used in investing activities Cash Flows From Financing Activities Proceeds from issuance of convertible debt Proceeds from issuance of common stock in public offering Proceeds from issuance of warrants Proceeds from exercise of stock options and other stock issuances Proceeds from issuance of common stock in private placement Principal payments on DOE loans Year Ended December 31, 2013 2012 $(294,040) $(74,014) $(396,213) 231,931 156,496 69,734 15,609 14,178 7,471 (1,891) 106,083 80,737 9,143 8,918 5,558 (10,692) 1,796 1,815 (13,498) 28,825 50,145 4,929 1,854 154 1,406 143 (183,658) (1,050,264) (60,637) (4,493) 252,781 162,075 209,681 106,230 249,492 61,968 (21,705) (460,561) (17,533) (434) 20,995 66,418 268,098 24,354 236,299 33,027 (17,303) (194,726) 1,121 (482) 189,944 9,603 (526) 47,056 10,255 (57,337) 264,804 (263,815) (969,885) (264,224) (239,228) (3,849) (205,841) 14,752 55 - 8,620 (1,330) (14,992) 189,131 (990,444) (249,417) 40,000 (206,930) 2,300,000 660,000 - 389,160 360,000 120,318 221,496 - 100,455 95,307 24,885 - 55,000 (452,337) (12,710) Purchase of convertible note hedges Common stock and convertible debt issuance costs Principal payments on capital leases and other debt Collateralized lease borrowing Proceeds from DOE loans Net cash provided by 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 (603,428) (177,540) - (35,149) (16,901) - (11,179) 3,271 2,143,130 (8,425) 635,422 (2,832) 188,796 419,635 (35,525) (6,810) (2,266) 1,059,824 643,999 (53,376) 845,889 $1,905,713 201,890 $845,889 255,266 $201,890