Tesla 2016 10-K

Required: Answer the following questions based on your examination of the Tesla, Inc. 2016 10-K Note that some questions pertain to fiscal year 2016 and others pertain to fiscal year 2015; please carefully read each question

( Tesla, Inc. 2016 10-K ) is available on the internet. I am unable to atteced it because it is 177 pages.

Inventory

1. What is the December 31, 2016 balance (in thousands) of Inventory for Tesla, Inc.? a. 2,067,454

b. 1,277,838

c. 6,259,796

d. 2,782,006

2. Find how Tesla determines inventorys cost. What cost does this method approximate? a. LIFO

b. FIFO

c. Average Cost

d. Specific Identification

3. Tesla values its inventory at the lower of cost or net realizable value. When Tesla is required to record a writedown journal entry for inventory, what specific account name does it debit?

a. Cost of Goods Sold

b. Loss on Inventory

c. Cost of Automotive Revenues

d. Inventory

4. When companies are required to record a write-down journal entry for inventory, which specific account name does GAAP prefer that a company debits?

a. Cost of Goods Sold

b. Loss on Inventory

c. Cost of Automotive Revenues

d. Inventory

5. For fiscal year 2015, what was the amount of Teslas inventory write-downs? a. $65.52 million

b. $52.8 million

c. $15.6 million

d. $44.9 million

6. Are Teslas inventory write-downs increasing or decreasing over the three-year period shown in the 10-K? a. Increasing

b. Decreasing

PP&E (Chapters 10 & 11)

7. What is the December 31, 2016 balance (in thousands) of Property, Plant, and Equipment, net, for Tesla, Inc.? a. $6,980,442

b. $3,134,080

c. $5,982,957

d. $3,403,334

8. What is the December 31, 2016 balance (in thousands) of Property, Plant, and Equipment, gross, for Tesla, Inc.? a. $5,982,947

b. $997,485

c. $2,154,367

d. $6,980,442

9. What is the December 31, 2016 balance (in thousands) of Land and buildings for Tesla, Inc.? a. $1,079,452

b. $194,465

c. $2,154,367

d. $6,980,442

10. How much interest expense related to self-constructed assets (construction in progress) did Tesla capitalize for the year ended December 31, 2016?

a. $41.5 million

b. $46.7 million

c. $198.8 million

d. $118.9 million

11. How much interest expense (rounded) would Tesla have reported in 2016 if they had not capitalized any interest related to self-constructed assets (construction in progress)?

a. $245.5 million

b. $198.8 million

c. $240.3 million

d. $118.9 million

12. Which depreciation method does Tesla use for its Property, plant, and equipment? a. Straight-line method

b. SYD method

c. DDB method

d. Activity Based method

13. Tesla, Inc. uses an estimated useful life for building and building improvements of a. 3 to 10 years

b. 20 to 30 years

c. 2 to 12 years

d. the shorter of their economic or legal useful life

14. When should PP&E be measured for impairment using the Recoverability test? a. Quarterly

b. Semi-annually

c. Annually

d. When circumstances change indicating a carrying amount may not be recoverable e. None of the above

15. To perform a Recoverability test for PP&E, the assets carrying amount is compared to

a. The sum of the expected future net cash flows (discounted) from the use of that asset and its disposition

b. The sum of the expected future net cash flows (undiscounted) from the use of that asset and its disposition

c. The assets original historical cost

d. The assets fair market value

16. If the Recoverability test indicates an impairment, the loss for an asset held for use is the amount by which the carrying amount of the asset exceeds

a. The book value of the asset

b. The historical cost of the asset

c. The sum of the expected future cash flows (undiscounted) from the use of the asset and its disposition d. The fair value of the asset

17. Is restoration of an impairment loss for PP&E allowed for an asset held for use? a. Yes

b. No

18. Is restoration of an impairment loss for PP&E allowed for an asset held for disposal? a. Yes

b. No

19. Did Tesla recognize a material impairment charge for long-lived assets in fiscal year 2016? a. Yes

b. No

Intangibles (Chapter 12)

20. What is the carrying amount (in thousands) for Intangible Assets, net as of December 31, 2016 for Tesla, Inc? a. $14,198

b. $8,867

c. $12,816

d. $376,145

21. Why did Teslas intangible assets increase from 2015 to 2016?

a. Tesla developed more intangible assets in-house

b. Tesla purchased another companys intangible assets

22. Which item is amortized by Tesla, Inc. over its estimated useful life?

a. Goodwill

b. Intangible Assets with definite useful lives

c. Intangible Assets with indefinite useful lives

d. All of the above

e. None of the above

23. Tesla, Inc. uses an estimated useful life of ___ for intangible assets with definite lives.

a. 3 to 10 years

b. 20 to 30 years

c. 2 to 30 years

d. Tesla does not amortize its intangibles with definite lives

24. What is the amount (in thousands) of Intangible assets not subject to amortization as of December 31, 2016 for Tesla, Inc.?

a. $86,832

b. $296,357

c. $130,332

d. $383,189

25. Tesla, Inc. acquired 100% of SolarCity during 2016. How much of the purchase price was allocated to acquired intangible assets (in thousands)?

a. $139,257

b. $129,196

c. $356,510

d. $ 65,842

26. Tesla, Inc. acquired 100% of SolarCity during 2016. How much of the purchase price was allocated to Goodwill (in thousands)?

a. $88,727

b. $2,145,977

c. $2,234,704

d. $0

27. The value of goodwill is the excess of

a. The purchase price over the fair value of tangible and identifiable intangible net assets acquired.

b. The purchase price over the fair value of tangible net assets acquired.

c. The purchase price over the carrying value of tangible and identifiable intangible net assets acquired.

d. The purchase price over the carrying value of tangible net assets acquired.

28. How much amortization of intangible assets (in thousands) does Tesla expect to record in 2017? a. $33,843

b. $7,044

c. $86,832

d. $289,313

29. Did Tesla recognize any goodwill impairment for December 31, 2016? a. Yes

b. No

30. Which of the following is not a characteristic of intangible assets?

a. They are long-term in nature

b. They lack physical existence

c. They are all subject to amortization

d. None of the above

31. Impairment testing is performed in the same way for indefinite-life intangibles and limited-life intangibles. a. True

b. False

Liabilities (Chapters 13 and 14)

32. What was the total Current Liabilities (in thousands) for Tesla, Inc. as of December 31, 2016? a. $1,860,341

b. $1,210,028

c. $5,827,005

d. $16,750,167

33. What consisted of the largest category within current liabilities for Tesla, Inc. as of December 31, 2016? a. Accounts payable

b. Accrued liabilities and other

c. Deferred revenue

d. Current portion of long-term debt and capital leases

e. None of the above

34. What categories of commitments and contingencies does Tesla, Inc. disclose? a. Operating leases

b. Capital leases

c. Litigation

d. Environmental liabilities

e. All of the above

35. What is the value of the asset retirement obligations for Tesla, Inc. as of 12/31/16? Choose the best answer. a. $0

b. $15 million

c. PV of $15 million

d. Between $15 million and $30 million

36. How much does Tesla, Inc. owe for taxes (in thousands) as of December 31, 2016? a. $152,897

b. $101,206

c. $26,698

d. None of the above

37. How much of Tesla, Inc.s current liabilities (in thousands) are related to their customers? (Consider information available from the balance sheet only.)

a. $763,126

b. $179,504

c. $663,859

d. $1,606,489

38. How much total liability (current and non-current, in thousands) did Tesla accrue related to its warranties as of December 31, 2016?

a. $180,754

b. $266,655

c. $153,766

d. $201,289

39. Were Teslas 1.50% Convertible Senior Notes due in 2018, issued at par, a discount, or a premium? Use cash amount received before transaction costs were paid to determine the answer. a. Par

b. Discount

c. Premium

40. By the end of fiscal 2016, how much credit was available to Tesla, Inc. via its asset-based credit agreement? a. $250 million

b. $750 million

c. $990 million

d. $1.2 billion

41. At December 31, 2016 was Tesla Inc. in compliance with all associated covenants related to the asset-based credit agreement?

a. Yes

b. No

42. What was the outstanding balance on the asset-based credit agreement as of December 31, 2016? a. $135 million

b. $1.2 billion

c. $969 million

d. $0

Equity (Chapters 15 and 16)

43. What type of common stock does Tesla have?

a. Par value stock

b. No-Par stock

44. Does Tesla have treasury stock on the balance sheet?

a. Yes

b. No

45. How many shares of preferred stock has Tesla sold as of December 31, 2016? a. 0

b. 100,000

c. 2,000,000

d. 161,561

46. Which statement best represents Teslas dividend policy for common stock?

a. Tesla rarely pay dividends

b. Tesla regularly pays dividends

c. Tesla has never paid dividends but plans to soon

d. Tesla has never paid dividends and doesnt plan to

47. What was the average amount received per share of common stock during Teslas May 2016 public offering? Use the most precise information available.

a. $0.22

b. $215.00

c. $214.78

d. $238.22

48. How many shares were used to purchase SolarCity? Use the most precise information available. a. 11,124,497

b. 2,145,977

c. 11,125

d. 0

49. What was Teslas weighted-average shares used to compute basic EPS for the year ended December 31, 2016? a. 161,561

b. 128,202

c. 144,212

d. 144,212,000

50. Where does Tesla report its convertible debt?

a. On the balance sheet as debt

b. On the balance sheet as equity

c. On the balance sheet between debt and equity

d. Both A and C