Problem 3.20

EXIBIT 3.18: STATEMENT OF CASH FLOWS

3.20 Interpreting the Statement of Cash Flows. Tesla Motors manufactures high-performance electric vehicles that are extremely slick looking. Exhibit 3.18 presents the statement of cash flows for Tesla Motors for 2010 through 2012. REQUIRED Discuss the relations among net income, cash flows from operations, cash flows from investing activities, and cash flows from financing activities for the firm over the three-year period. Speculate on the reasons for significant adjustments on the statement of cash flows. Describe what stage of life cycle these relations suggest for Tesla Motors. Why are negative operating cash flows less than the net losses? Where is Tesla obtaining cash, and what is it doing with it? What do you think will happen with cash flows in 2013? Cash Flows from Operating Activities Net loss $(396,213)$(254,411)$(154,328) Adjustments to reconcile net loss to net cash used in operating activities: (Cnntinued) Source: Tesla Motors, Inc., Form 10-K for the Fiscal Year Ended December 31, 2012