• Tesla, Inc. recorded a $1 billion impairment loss on its automotive manufacturing equipment due to technological obsolescence. The company provided the following financial figures:
  • Impairment Loss: $1 billion
  • Total Revenue: $30 billion
  • Operating Expenses: $25 billion
  • Net Income: $5 billion

• Requirements:
  1. Calculate Tesla's net income after accounting for the impairment loss.
  2. Prepare an income statement showing the impact of the impairment loss on operating income.
  3. Analyze Tesla's operating profit margin before and after the impairment loss.
  4. Discuss the disclosure requirements for impairment losses in Tesla's financial statements.
  5. Evaluate Tesla's return on investment (ROI) and its relation to the impairment loss.