Question 3 - Estimation of Service Period In this question, we will examine financial information from Tesla, Inc (December 31, 2021) and Alphabet Inc. (December 31, 2021). Find their most recent financial statements. Tesla's sales model is similar to Apple's, so we can use its deferred revenue balances to estimate its average service period using the assumptions we used in class. (1) How much deferred revenue does Tesla have on its balance sheet as of December 31, 2021? What is the proportion of current deferred revenue out of that total amount? (2) Extending the exercises we did for Apple and Microsoft in class, what is Tesla's estimated average service period based on your answer to (1)? To remind you, in class, we found that 2 years of average service period leads to 67% of deferred revenue being current and that 3 years of average service period leads to 50% of deferred revenue being current. Alphabet (Google) has a sales model similar to Microsoft's, so we cannot use its deferred revenue balances to estimate its average service period. Therefore, similar to Microsoft's case, we will use Alphabet's disclosure of its remaining performance obligations, including those unbilled. (3) In page 61 of Alphabet's most recent Form 10-K, find a disclosure about Alphabet's remaining performance obligations (revenue backlog). How much of its remaining performance obligations does Alphabet expect to recognize within the next 24 months? (4) Based on your answer to (3), what is Alphabet's estimated average service period? Question 3 - Estimation of Service Period In this question, we will examine financial information from Tesla, Inc (December 31, 2021) and Alphabet Inc. (December 31, 2021). Find their most recent financial statements. Tesla's sales model is similar to Apple's, so we can use its deferred revenue balances to estimate its average service period using the assumptions we used in class. (1) How much deferred revenue does Tesla have on its balance sheet as of December 31, 2021? What is the proportion of current deferred revenue out of that total amount? (2) Extending the exercises we did for Apple and Microsoft in class, what is Tesla's estimated average service period based on your answer to (1)? To remind you, in class, we found that 2 years of average service period leads to 67% of deferred revenue being current and that 3 years of average service period leads to 50% of deferred revenue being current. Alphabet (Google) has a sales model similar to Microsoft's, so we cannot use its deferred revenue balances to estimate its average service period. Therefore, similar to Microsoft's case, we will use Alphabet's disclosure of its remaining performance obligations, including those unbilled. (3) In page 61 of Alphabet's most recent Form 10-K, find a disclosure about Alphabet's remaining performance obligations (revenue backlog). How much of its remaining performance obligations does Alphabet expect to recognize within the next 24 months? (4) Based on your answer to (3), what is Alphabet's estimated average service period