Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tesla Inc., an electric vehicle manufacturer, presents the following data: Sales Revenue: $900,000,000 Variable Costs: $500,000,000 Fixed Costs: $200,000,000 Interest Expense: $25,000,000 Depreciation: $40,000,000 Tax
Tesla Inc., an electric vehicle manufacturer, presents the following data:
- Sales Revenue: $900,000,000
- Variable Costs: $500,000,000
- Fixed Costs: $200,000,000
- Interest Expense: $25,000,000
- Depreciation: $40,000,000
- Tax Rate: 20%
- Total Assets: $800,000,000
- Total Liabilities: $500,000,000
- Shareholders' Equity: $300,000,000
Requirements:
- Prepare an Income Statement for Tesla.
- Calculate the Contribution Margin.
- Determine the Break-Even Point in units (assume the average sales price per unit is $60,000).
- Calculate the Debt-to-Equity Ratio and Interest Coverage Ratio.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started