Question
Tesla, Inc. projects the following cash flows for the upcoming fiscal year: Expected Net Sales: $1,000,000,000 Expected Cost of Goods Sold: $600,000,000 Depreciation Expense: $100,000,000
- Tesla, Inc. projects the following cash flows for the upcoming fiscal year:
- Expected Net Sales: $1,000,000,000
- Expected Cost of Goods Sold: $600,000,000
- Depreciation Expense: $100,000,000
- Operating Expenses: $200,000,000
- Interest Expense: $50,000,000
- Income Tax Expense: $175,000,000
- Capital Expenditures: $300,000,000
- Expected Cash Flows from Financing Activities: $400,000,000
a. Forecast Tesla, Inc.'s Operating Cash Flow (OCF) and Free Cash Flow (FCF) for the fiscal year. b. Analyze Tesla, Inc.'s projected capital expenditures and their impact on future cash flows. c. Discuss how Tesla, Inc.'s financing activities contribute to its overall liquidity and financial stability. d. Evaluate the projected income tax expense and its influence on Tesla, Inc.'s profitability. e. Recommend strategies for Tesla, Inc. to manage its cash flows effectively amidst high capital expenditures. f. Analyze the impact of Tesla, Inc.'s cash flow projections on its ability to fund research and development initiatives.
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