need answers for chapter 4 on the company tesla.

please help me.

age 14 Vrund Shah Tesla 4.2 - Property, Plant and Equipment? Property Plant and Equipment Category Significance A B C D Question 4.3 - How good is the Goodwill Goodwill is a balance sheet item reported by many companies. The details of the Goodwill are generally described in the Notes to the Financial Statement. Goodwill should reflect the strategic future value of an acquisition. Mark your answer "NA" if your company does not report Goodwill. 4.3 - How good is the Goodwill? A Does your company report Goodwill? What is the value of the Goodwill? C What is the ratio of Goodwill to Total Assets (Goodwill = Total Assets)? D In your opinion why is the ratio of Goodwill to Total Assets significant or insignificant? E What was the source of the Goodwill? F In your opinion why was the acquisition justified or not justified? Question 4.4 - Current Liabilities Some companies have current liabilities other than Accounts Payable, Accrued Salaries and Wages and Accrued Income Tax. Locate the Current Liabilities section of the Balance Sheet for your company and review the current liability categories. What categories of current liabilities other than Accounts Payable, Accrued Salaries and Wages and Accrued Income Tax are reported by your company? What is it their significance to the company? Mark your answer "NA" if your company does not report current liability categories other than Accounts Payable, Accrued Salaries and Wages and Accrued Income Tax.Page 13 of 44 Vrund Shah Tesla Questions for Chapter 4 Question 4.0 - What is your company's fiscal year 4.0 - What is your company's fiscal year? A When does your company's fiscal year end? In your opinion, why did your company select this date to end its fiscal year? C Do competitors use the same fiscal year as your company? Question 4.1 - Current Assets Some companies have current assets other than Cash, Short Term Investments, Accounts Receivables and Inventories. Locate the Current Asset section of the Balance Sheet for your company and review the current asset categories. What categories of current assets, other than Cash, Short Term Investments, Accounts Receivables and Inventories are reported by your company? What is their significance to the company? Mark your answer "NA" if your company does not report current asset categories other than Cash, Short Term Investments, Accounts Receivables and Inventories. 4.1 - Current Assets Current Asset Category Significance Question 4.2 - Property, Plant and Equipment Some companies have categories for Property, Plant and Equipment other than land, buildings, factories, furniture and equipment. What categories of Property Plant and Equipment other than land, buildings, factories, furniture and equipment are reported by your company? What is it their significance to the company? Mark your answer "NA" if your company does not report categories of Property Plant and Equipment other than land, buildings, factories, furniture and equipment. Copyright DA Bittar 2009, 2010, 2012Question 4.18 - How well can your company pay its bills? Enter the amounts, for all three periods, for the Net Cash from Operating Activity account from your company's Statement of Cash Flow. Enter the amounts, for all three periods, for the Copyright DA Bitter 2009, 2010, 2012 Page 22 of 44 Vrund Shah Tesla Current Liabilities from your company's Balance Sheet. For each period, calculate the Operating Cash Flow Ratio using the following formula Net Cash from Operating Activity = Current Liabilities Enter the amounts in millions of dollars from the SEC Form 10K, for the current year, the previous year and the next previous year. Describe the trend for each of the major accounts. Describe the trend direction. Use phrases like: up only this year but level in previous years, consistently up, down only this year, consistently down or level for all years. Also, in your opinion is the trend positive, negative, insignificant? Question 4.18 - How well can your company pay its bills Accounts Current Previous Next Trend Description Yr Previous Yr A Net cash from operating activity B Current Liabilities C Operating Cash Flow Ratio The operating cash flow ratio can gauge a company's liquidity in the short term. Using cash flow as opposed to income is sometimes a better indication of liquidity simply because, as we know, cash is how bills are normally paid off. If the operating cash flow ratio is less than one, it means that the company has generated less cash over the year than it needs to pay off short term liabilities as at the year end. This may signal a need to raise money to meet liabilities. Question 4.19 - How leveraged is your company? Enter the amounts, for all three periods, for the Net Cash from Operating Activity account from your company's Statement of Cash Flow. Enter the amounts, for all three periods, for the Interest Expense from your company's Income Statement. For each period, calculate the Cash Interest Coverage Ratio using the following formula. Net Cash from Operating Activity = Income Expense Enter the amounts in millions of dollars from the SEC Form 10K, for the current year, the previous year and the next previous year. Describe the trend for each of the major accounts. Describe the trend direction. Use phrases like: up only this year but level in previous years, consistently up, down only this year, consistently down or level for all years. Also, in your opinion is the trend positive, negative, insignificant? Question 4.19 - How leveraged is your company? Accounts Current Previous Next Trend Description Yr Yr Previous Yr Net cash from operating activity B Interest Expense C Cash Interest Coverage RatioPage 23 of 44 Vrund Shah Tesla The Cash Interest Coverage Ratio is an indicator of how well your company will be able to make the interest payments on its entire debt load. A highly leveraged company will have a low ratio, and a company with a strong financial position will have a high ratio. Any company with a cash interest ratio less than 1.0 is in risk of potential default. The company must raise cash outside its core business to make its current interest payments. A ratio of 1.5 is generally considered the bare minimum level of comfort for any company in any industry. Interest coverage is the equivalent of a person taking the combined interest expense from their mortgage, credit cards, automobile loans and education loans and calculating the number of times they can pay it with their annual pre-tax income. For bondholders, the Cash Interest Coverage Ratio might act as a safety gauge. It might give the bondholder a sense of how far a company's earnings can fall before the company will start defaulting on its bond payments. For stockholders, the Cash Interest Coverage Ratio is important because it gives a clear picture of the short-term financial health of a business. Question 4.20 - How well does your company invest in its future? Enter the amounts, for all three periods, for the Retained Earnings per share and the Stockholders' Equity per share from your company's Statement of Stockholders' Equity. For each period, calculate the Retained Earnings Ratio using the following formula. Retained Earnings Per Share - Stockholders' Equity per share Enter the amounts in dollars from the SEC Form 10K, for the current year, the previous year and the next previous year. Describe the trend for each of the major accounts. Describe the trend direction. Use phrases like: up only this year but level in previous years, consistently up, down only this year, consistently down or level for all years. Also, in your opinion is the trend positive, negative, insignificant? Dividends paid to stockholders from earnings cannot be used to help the company grow. One way for the company to grow is to invest the earnings in the core business for the company. Generally, companies will retain their earnings to invest in growth opportunities, such as buying new equipment, investing in research and development or acquisitions. Last, explain why your company is or is not investing adequately in its future. Question 4.20 - How well does your company invest in its future? Accounts Current Previous Next Trend Description Yr Yr Previous Yr Retained Earnings per share Stockholders' Equity per share Retained Earnings Ratio Is your company investing adequately in its future and why?Page 24 of 44 Vrund Shah Tesla Question 4.21 - Capital and Treasury Stock Enter the amounts, for all three periods, for number of shares outstanding for common stock and preferred stock outstanding and treasury stock. List the addition 'classes' of capital stock which you company may have. Enter the amounts in millions of shares from the SEC Form 10K, for the current year, the previous year and the next previous year. Enter "NA" if your company has no preferred stock or treasury stock. Describe the trend for each of the major accounts. Describe the trend direction. Use phrases like: up only this year but level in previous years, consistently up, down only this year, consistently down or level for all years. Also, in your opinion is the trend positive, negative, insignificant? Question 4.21 - Capital and Treasury Stock Accounts Current Previous Next Trend Description Yr Yr Previous Yr Common stock Preferred stock C Treasury stock D Question 4.21 -Basic information about your company not found on the financial statement? How is information about the following items disclosed by your company in the Notes to the Financial Statement? Generally, this information can be found in Note 1. The titles may not be identical to the title in the question. Enter "NA" if your company has no notes for a question. Question 4.21-Basic information about your company not found on the financial statement? Description of Business B Consolidation C Foreign Currency Cash and Cash Equivalents E InventoriesPage 25 of 44 Vrund Shah Tesla Question 4.22 -Other significant information about your company not found on the financial statement? How is information about the following items disclosed by your company in the Notes to the Financial Statement? The titles may not be identical to the title in the question. Enter the information disclosed about each of the items in the Notes for your company. Additionally, enter the note number in which the information was disclosed. Last, explain why you believe this disclosure is or is not significant. Enter "NA" if your company has no notes for a question. Question 4.22 -Other information about your company not found on the financial statement? Accounts Note Disclosure Importance # Discontinued Operations B Related Parties C ContingenciesPage 15 of 44 Vrund Shah Tesla 4.4 - Current Liabilities Current Liability Category Significance C D Question 4.5 - How much stock is there and who owns it? The equity structure is a significant aspect of a public company. It can have a dramatic impact on stock price movement and appreciation. Review the SEC Form 10-K and Annual Report to Stockholders and answer the following questions 4.5 - How much stock is there and who owns it? A What is the par value of the common stock? B What is the number of shares outstanding? C What is the current listed market price for the common stock? D What is the number of common shares authorized? E What is the number of treasury shares? Question 4.6 - Who owns the stock? Knowing who owns large blocks of stock can be useful information when assessing the investment value of a company. The percent ownership of a company will determine the amount of control a shareholder has over the company. In a democratic election, each citizen has only one vote. In a corporate election, each shareholder gets one vote for each share of stock the shareholder owns. A shareholder with 1million share gets 1million votes while a shareholder with 10 shares gets only 10 votes. In a company with 3million shares outstanding, the shareholder with 1million shares has much more influence and power than the shareholder with 10 shares. Proxy Statement The company's annual proxy statement will disclose the number of shares owned by the each member of the Board of Directors. It will also identify all shareholders who own 5% or more of the common stock and voting stock of the company. The annual proxy statement must be filed with the Securities Exchange Commission using Form DEF 14a, the definitive annual proxy statement.Page 16 of 44 Vrund Shah Tesla 4.6 - Who owns the stock? A How many shares are held by Officers and Directors? What does this tell you? Who is the largest stockholder? What does this tell you about the company? C What other classes of stock are outstanding? Question 4.7 - First look at the company's strength The balance sheet is a snapshot of the company financial strength. Endurance and strength are important when attempting to assess an athlete's ability and it is the same for a public company. The first place to look for a company's endurance and strength are the current and previous year balance sheets. Calculate the percent increase or decrease in each of the following balance sheet accounts. Place the percentage in parenthesis if it is negative. 4.7 - First look at the company's strength Current Year Previous Year Percent Change Cash and cash equivalents Accounts Receivable Inventory Property, plant & equipmen F Accounts Payable Accrued Salanes Accrued Income Tax Long term debt Common Stock Treasury Stock K Retained Earnings Question 4.8 - Significant changes in the balance sheet In your opinion, what were the two most significant changes in the company's balance sheet between the current year and the previous year? What were the two balance sheet accounts? Why do you believe they are significant?Question 4.8 - Significant changes in the balance sheet In your opinion, what were the two most significant changes in the company's balance sheet between the current year and the previous year? What were the two balance sheet accounts? Why do you believe they are significant? Copyright DA Bitter 2009, 2010, 2012 Page 17 of 44 Vrund Shah Tesla 4.8 - Significant changes in the balance sheet Balance Sheet Account Why the change was significant? B Question 4.9 - Significant changes in the cash account Cash is an important part of a business. Some people say, "Cash is king." Describe the change in the Cash and Cash Equivalent account between the current year and the previous year. In your opinion why was it or was it not significant? 4.9 - Significant changes in the cash account Change in the account Why the change was significant? Question 4.10 - Debt to equity and the competition The debt load for a company may or may not be a burden. It can become a competitive detriment when the debt service it too large or when the company's ability to borrow is too retrained. It could also create vulnerability if the company's chief competitor has the borrowing strength to "buy market share." What is the current ratio of total debt to total stockholder's equity for your company's most significant competitor? What is the current ratio of total debt to total stockholder's equity for your company? Has the ratio changed between the current year and the previous year for your company? Why or why not was the change in the ratio significant? 4.10 - Debt to equity and the competition What is the current ratio of total debt to total stockholder's equity for your company's most significant competitor? B What is the current ratio of total debt to total stockholder's equity for your company? C Has the ratio changed between the current year and the previous year for your company? Why or why not was the change in the ratio significant?Question 4.11 - 'Income statement'. What's in a name? The income statement is a report of the company's revenue and expenses. Companies have been using the report for almost a hundred years. Over the years, accountants have adopted different names for the income statement. What name does your company use for the income statement? In your opinion why do they use it instead of 'income statement ? 4.11 - 'Income statement'. What's in a name? A What name does your company use for the 'income statement"? B In your opinion, why do they use it? Question 4.12 - How does your company report the core business? Often, a company will use terms closely related to their core business when describing the line items in the operational section of the income statement. Some standard descriptions for the line items in the operational section of the income statement are: net sales cost of goods sold gross profit general administrative expense operating income How does your company describe the items in its operating section of the income statement? Does the company use descriptions other than net sales, cost of goods sold, gross profit, general administrative expense and operating income? Why do you believe they use them? What does it tell you about the core business for the company? Mark your answer "NA" if your company did not unique operating section descriptions. 4.12 - How does your company report the core business? Item descriptions In your opinion, why is it used? C D E F What does it tell you about the core business for the company? Copyright DA Bittar 2009, 2010, 2012 Page 18 of 44 Vrund Shah Tesla Question 4.13 - How does your company describe its business income? The way a company reports its income can help to better understand how the company prioritizes its revenue streams and how it perceives its core business. Does your company report revenues by business segment? What segments are individually identified? In your opinion, does the most significant business appear first? What is the most significant business segment and why? Mark your answer "NA" if your company did not report revenue by business segment.Question 4.13 - How does your company describe its business income? The way a company reports its income can help to better understand how the company prioritizes its revenue streams and how it perceives its core business. Does your company report revenues by business segment? What segments are individually identified? In your opinion, does the most significant business appear first? What is the most significant business segment and why? Mark your answer "NA" if your company did not report revenue by business segment. 4.13 - How does your company describe its business income? Revenue segment descriptions Identify the most significant segment and explain why it is the most significant A B D F Question 4.14 - Irregular items. Good or Bad? While the term "irregular" is not intended as a value judgment, these items can have a positive or negative impact on the company. Review the income statement. Select the one irregular item on the income statement or in the notes section you believe is the most significant. Mark your answer "NA" if your company did not report an irregular item. 4.14 - Irregular items. Good or Bad? A How many irregular items were reported individually on the income statement? B Describe the irregular item you believe is most significant? Use the description as it appears on the income statement or in the notes. C What was the dollar value of the item? D Was the item reported individually as a separate line item on the income statement or in the notes section? In your opinion, why was it reported in the notes or as a line item? E Did the item have a positive, negative or neutral impact on the company? F In your opinion, why does the item have a positive, negative or neutral impact on the company? Copyright DA Bittar 2009, 2010, 2012 Page 20 of 44 Vrund Shah Tesla G In your opinion, will the impact be short term. ongoing or long term. Why?Question 4.15 - The big questions. Are they makin' money? Are they lookin' good? The answer to Benny's question "Are they makin' money?" cannot always be answered with a "yes" or a "no". Whether your company is "lookin' good" may be difficult to answered with a "yes" or a "no". Understanding the income and expense trends will generally reveal enough information to answer "the big questions". Review the three year period reported in your company's income statement. Describe the trend for each of the major accounts on your company's income statement. Describe the trend direction. Use phrases like: up only this year but level in previous years, consistently up, down only this year, consistently down or level for all years. Also, in your opinion is the trend positive, negative, insignificant? Your company may have different account descriptions and additional significant accounts. Modify the accounts to fit your company's income statement. Enter the amounts in millions of dollars from the SEC Form 10K, for the current year, the previous year and the next previous year. Question 4.15 - The big questions. Are they makin' money? Are they lookin' good? Accounts Current Previous Next Trend Description Yr Yr Previous Yr Net Sales B Cost of Goods Sold Gross Profit Operating Expense Operating Income (loss) Non-operating income (loss) Income Tax Net IncomeQuestion 4.16 - Which trend is important and why? The account with largest declining or increasing trend is not always the most significant trend on a company's income statement. Of the trends you identified in the previous question, which Copyright DA Bittar 2009, 2010, 2012 Page 21 of 44 Vrund Shah Tesla account, in your opinion, has the most significant trend for your company? Why do you believe it to be the most significant? Trends generally do not remain constant forever. What might reverse the significant trend and how might the reversal affect your company? 4.16 - Which trend is important and why? A What account has the most significant trend for your company? B Why do you believe it is the most significant trend? C What might reverse this trend and how would the reversal impact the company? Question 4.17 - How strong is your company's cash position? Enter the amounts for each cash flow account from your company's Statement of Cash Flow. Review the three year period reported in your company's Statement of Cash Flow. Describe the trend for each of the major accounts. Describe the trend direction. Use phrases like: up only this year but level in previous years, consistently up, down only this year, consistently down or level for all years. Also, in your opinion is the trend positive, negative, insignificant? Your company may have different account descriptions and additional significant accounts. Modify the accounts to fit your company's Statement of Cash Flow. Enter the amounts in millions of dollars from the SEC Form 10K, for the current year, the previous year and the next previous year. Question 4.17 - How strong is your company's cash position? Accounts Current Previous Next Trend Description Yr Yr Previous Yr A Net cash from operating activity Net cash from investing activity Net cash from financing activity Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year F Cash and cash equivalents it end of year