Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tesla Inc.'s cash flow statement for the year ended December 31, 2023, is summarized as follows: Operating Activities: Net Income: $5,000,000 Depreciation Expense: $2,000,000 Increase
Tesla Inc.'s cash flow statement for the year ended December 31, 2023, is summarized as follows:
Operating Activities:
- Net Income: $5,000,000
- Depreciation Expense: $2,000,000
- Increase in Accounts Receivable: $500,000
- Decrease in Inventory: ($300,000)
- Increase in Accounts Payable: $400,000
- Interest Expense Paid: ($100,000)
- Income Tax Paid: ($1,000,000)
- Net Cash Provided by Operating Activities: $6,500,000
Investing Activities:
- Purchase of Property, Plant, and Equipment: ($3,000,000)
- Proceeds from Sale of Investments: $1,000,000
- Net Cash Used in Investing Activities: ($2,000,000)
Financing Activities:
- Proceeds from Issuance of Long-term Debt: $4,000,000
- Repayment of Short-term Borrowings: ($500,000)
- Payment of Cash Dividends: ($1,500,000)
- Net Cash Provided by Financing Activities: $2,000,000
a. Calculate the Cash Flow from Operations for Tesla Inc. using the indirect method. b. Determine the Net Cash Used in Investing Activities and discuss its implications for Tesla Inc.’s investment in future growth. c. Analyze the Financing Activities section and its impact on Tesla Inc.’s financial flexibility and capital structure.
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