In chapter 5, we talked about inventory. Refer to "Note 6 - Inventory" on the [Disclosures] worksheet. In this note, Tesla explains that it "write-downs inventory for any excess or obsolete inventories." This means that it debits a Loss or Expense account and credits an Inventory account. Tesla Corporation Fiscal 2020 Fiscal 2019 (ended Dec. 31, 2020) (ended Dec. 31, 2019) 24. What amount (in Smillions) of inventory did Tesla write-down? 25. What percentage was this of Tesla's total inventory? In chapter 8, we talked about long-term assets. Refer to "Note 8 - Property, Plant and Equipment, Net" on the [Disclosures) worksheet. Remember that the value reported on the Balance Sheet is net of accumulated depreciation--the remaining unused value of these assets. Fiscal 2020 Fiscal 2019 (ended Dec. 31, 2020) (ended Dec 31, 2019) 26. Percentage of Property, plant and Equipment assets "used up" (already depreciated) 27. In chapter 9, we talked about accrued liabilities. Refer to Refer to "Note 9 - Accured Liabilities and Other" on the [Disclosures] workshet. . Note that these amounts (almost $4 Billion) were accrued in the credit part of a journal entry. What category of account (asset, liability, revenue, expense, etc.) would have appeared in the debit part of these accrual journal entries? Balance Sheet - Horizontal Analysis B D Following are excerpts from Tesla's 2020 annual 10-K document. Expanded excerpts from the 10-K were also published with the assignment in Canvas (see the notes at the bottom for explanation of some terms used). 7 193 Note 2 - Summary of Significant Accounting Policies Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less at the date of purchase are considered cash equivalents. Our cash equivalents are primarily comprised of money market funds. Restricted Cash We maintain certain cash balances restricted as to withdrawal or use. Our restricted cash is comprised primarily of cash as collateral for our sales to lease partners with a resale value guarantee, letters of credit, real estate leases, Insurance policies, credit card borrowing facilities and certain operating leases. In addition, restricted cash includes cash received from certain fund investors that have not been released for use by us and cash held to service certain payments under various secured debt facilities. We record restricted cash as other assets in the consolidated balance sheets and determine current or noncurrent classification based on the expected duration of the restriction. Our total cash and cash equivalents and restricted cash, as presented in the consolidated statements of cash flows, was as follows (in millions): December 31, December 31, December 31 2020 2019 2018 3 Cash and cash equivalents $19,384 $6,268 $3,686 Restricted cash included in prepaid expenses and other current 238 246 9 assets 10 Restricted cash included in other non-current assets 279 269 398 11 Total as presented in the consolidated statements of cash flows $19.901 $6.783 $4,277 Note 6 - Inventory 12 13 Our inventory consisted of the following (in Millions): December 31. December 31 2020 2019 15 Raw materials $1,508 $1,428 16 Work in process 17 Finished goods (1) 1,356 18 Service parts 434 406 19 Total $4,101 $3,552 (1) Finished goods inventory includes vehicles in transit to fulfil customer orders, new vehicles available for sale, used vehicles, energy storago products and Solar Roof products available for sale, For solar energy systems, we commence transferring component parts from inventory to construction in progress, a component of solar energy systems, once a lease or PPA contract with a customer has been executed and installation has been initiated. Additional costs incurred on the leased solar energy systems, including labor and overhead, are recorded within solar energy systems under construction. We write-down inventory for any excess or obsolete inventories or when we beleve that the net realizable value of inventories is less than the carrying value. During the years ended December 31, 2020, 2019 and 2018, we recorded write-downs of $145 milion, $138 million and 578 milion, respectively, in cost of revenues. Note 8 - Property, Plant, and Equipment, net 14 362 493 1,666 20 2 21 22 23 Acantholimon B D Following are excerpts from Tesla's 2020 annual 10-K document. Expanded excerpts from the 10-K were also published with the assignment in Canvas (see the notes at the bottom for explanation of some terms used). Note 8 - Property, Plant, and Equipment, net Our inventory consisted of the following (in millions): December 31, December 31, 2020 2019 Machinery, equipment, vehicles and office fumiture $8,493 $7,167 Tooling 1,811 1,493 Leasehold improvements 1,421 1,087 Land and buildings 3,662 3,024 Computer equipment, hardware and software 856 595 Construction in progress 1,621 764 17,864 14.130 Less: Accumulated depreciations (5.117) (3.734) Total $12.747 $10,396 Construction in progress is primarily comprised of construction of Gigafactory Berlin and Gigafactory Texas, expansion of Gigafactory Shanghal and equipment and tooling related to the manufacturing of our products. We are currently constructing Gigafactory Berlin under conditional permits. Completed assets are transferred to their respective asset classes, and depreciation begins when an asset is ready for its intended use. Interest on outstanding debt is capitalized during periods of significant capital asset construction and amortized over the useful lives of the related assets. During the years ended December 31, 2020 and 2019, we capitalized $48 million and $31 million, respectively. of interest Depreciation expense during the years onded December 31, 2020, 2019 and 2018 was $1.57 billion, 51.37 billion and $1.11 billion, respectively, Gross property, plant and equipment under finance leases as of December 31, 2020 and 2019 was $2.28 billion and $2.08 bilion, respectively, with accumulated depreciation of $816 million and $483 milion respectively, 6 Note 9 - Accrued Liabilities and Other As of December 31, 2020 and 2019, accrued liabilities and other current liabilities consisted of the following (in millions 38 December 31, December 31 19 2020 2019 0 Accrued purchases (1) $901 5638 1 Taxes payable (2) 777 611 2 Payroll and related costs 654 466 13 Accrued warranty reserve, current portion 479 344 14 Sales retum reserve, current portion 272 45 Operating lease llabilities, current portion 286 228 46 Accrued interest 77 86 47 Resale value guarantees, current portion 23 317 -48 Other current liabilities 241 260 49 Total $3,855 $3.222 (1) Accrued purchases primarily reflects receipts of goods and services that we had not been invoiced yet. As we are invoiced for those goods and services, this balance will reduce and accounts payable will increase Instructions Questions MDA 417 50 Raly Bali seu LT WETU W WROTY WYSE of interest Depreciation expense during the years ended December 31, 2020 2019 and 2018 was $1.57 billion, $1.37 billion and $1.11 billion, respectively. Gross property, plant and equipment under finance leases as of December 31, 2020 and 2019 was $2.28 billion and $2.08 bilion, respectively, with accumulated depreciation of $816 milion and $483 milion, respectively Note 9 - Accrued Liabilities and Other As of December 31, 2020 and 2019, accrued liabilities and other current liabilities consisted of the following in milions) December 31, December 31, 2020 2019 Accrued purchases (1) 5901 $638 Taxes payable (2) 777 611 Payroll and related costs 654 466 Accrued warranty reservo, current portion 479 Salos rotum reserve, ourront portion 417 272 Operating loose labilities, current portion 286 228 Accrued Interest 77 86 Resale value guarantees, current portion 23 other current liabilities 241 200 Total $3,855 $3.222 344 317 (1) Acored purchases primarily reflects receipts of goods and services that we had not been involved yet. As we are invoiced for those goods and services, this balance will reduce and accounts payable will increase (2) Taxes payable includes value added tax, sales tax, property tax, use tax and income tax payables Terminology used above: Cash Equivalents are very short-term (