Tesla Motors manufactures high performance electric vehicles that are extremely slick looking. Exhibit 3.20 presents the statement
Question:
Required
Discuss the relations among net income, cash flows from operations, cash flows from investing activities, and cash flows from financing activities for the firm over the three-year period.
Describe what stage of life cycle these relations suggest for Tesla Motors. Why are negative operating cash flows less than the net losses? Where is Tesla obtaining cash, and what are they doing with it? What do you think will happen with cash flows in 2013?
Transcribed Image Text:
Exhibit 3.20 Tesla Motors Statement of Cash Flows (amounts in thousands) (Problem 3.17) Year Ended December 31 2012 2011 2010 Cash Flows From Operating Activities Net loss $(396,213) $(254A11) $(154328) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization Change in fair value of warrant liabilities Discounts and premiums on short-term marketable securities Stock-based compensation Excess tax benefits from stock-based compensation Loss on abandonment of fixed assets Inventory write-downs Changes in operating assets and liabilities 28,825 16,919 2,750 12 29419 10,623 5,022 56 21,156 (74) 1,504 345 1.828 Accounts receivable Inventories and operating lease vehicles Prepaid expenses and other current assets Other assets (3,222) (194,726) (13,638) (28,513) (4977) (463) (17,303) (2,829) (248) (288) 19,891 10,620 1,121 (482) 9,603 (526) s payable 187,821 Accrued liabilities Deferred development compensation Deferred revenue Reservation payment:s Other long-term liabilities Net cash used in operating activities 13,345 (156) 4801 4,707 3,515 (266,081)(128,034)(127817 (1,927) 61,006 2,641 10,255 Cash Flows From Investing Activities Purchases of marketable securities Maturities of short-term marketable securities Payments related to acquisition of Fremont man ufacturing facility (14,992) 40,000 (64,952) 40,000 and related assets Purchases of property and equipment excluding capital leases Withdrawals out of (transfers into) our dedicated Department of (65,210) (239,228) (184,226) 40,203) Energy account, net Increase in other restricted cash 8,620 (1,330) 50,121 (7359 (3,201) 1,287) Net cash used in investing activities (206,930) (162,258) (180,297) Cash Flows From Financing Activities Proceeds from issuance of common stock in public offerings, net 221,496 172410 188,842 80,000 Proceeds from issuance of common stock in private placements 59,058 (416) 204,423 Prindpal payments on capital leases and other debt Proceeds from long-tem Prindpal payments Proceeds from exercise of stock options and other stock issuances Excess tax benefits from stock-based compensation Deferred common stock and loan facility issuance costs (2,832) 188,796 (12710) 24885 (315) t debt and other long-tem i on long-tem debt 71,828 10,525 1,350 74 (3,734) 338,045 29,931 69,627 255,266 $ 99,558 Net cash provided by financing activities 419,635 (53,376 155,708 255,266 446,000 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 99,558 $201,890 Source: Tesla Mators, Inc, Form 10-K for the Fiscal Year Ended December 31, 2012
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
The first pattern to note is the increasing losses reported across 20102012 more than doubling from 154 million to 396 milliona 157 increase Negative operating cash flows experienced a similar trend r...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Question Posted:
Students also viewed these Accounting questions
-
Tesla Motors manufactures high-performance electric vehicles that are extremely slick looking. Exhibit 3.18 presents the statement of cash flows for Tesla Motors for 2010 through 2012. REQUIRED...
-
The statement of cash flows for Chicos FAS, Inc., for the years ended January 31, 2009, February 2, 2008, and February 3, 2007, appears on the following page. CHICOS FAS, INC., AND SUBSIDIARIES...
-
The statement of cash flows for Buenco, a firm in Argentina, showed a net cash inflow from operations of Ps427,182 and a net cash outflow for financing of Ps21,806. The comparative balance sheets...
-
Can public works increase equilibrium wages?
-
How is a political risk probability related to a country spread?
-
Two thin rectangular sheets (0.20 m 0.40 m) are identical. In the first sheet the axis of rotation lies along the 0.20-m side, and in the second it lies along the 0.40-m side. The same torque is...
-
The Meyers Pharmaceutical Company, a drug manufacturer, has the following system for billing and recording accounts receivable: 1. An incoming customer's purchase order is received in the order...
-
Bretts Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the companys upcoming cash receipts and cash disbursements: a....
-
A strip of paper is laminated to a same size strip of aluminum foil at 78 o F, and the laminated material is stored at this temperature. If the storage temperature later increases to 95 o F, will the...
-
You have identified relevant controls for several assertions within the revenue cycle, and you must use IDEA to perform several tests of controls. Required: a. ELM has a policy of using pre numbered...
-
The Coca-Cola Company (Coca-Cola), like PepsiCo, manufactures and markets a variety of beverages. Exhibit 3.18 presents a statement of cash flows for Coca-Cola for three years. Exhibit 3.18 The...
-
The Apollo Group is one of the largest providers of private education, and runs numerous programs and services, including the University of Phoenix. Exhibit 3.25 provides the statement of cash flows...
-
FIGURE EX4.37 shows the angular acceleration graph of a turntable that starts from rest. What is the turntables angular velocity at (a) t = 1 s, (b) t = 2 s, and (c) t = 3 s? Figure Ex 4.37 a (rad/s)...
-
The term that describes when inflation declines but nonetheless remains at a positive level is: A. deflation. B. stagflation. C. disinflation.
-
What is the moral hazard problem, and how do insurers mitigate it?
-
What is the primary purpose of healthcare reform?
-
The factor for which it is most difficult to estimate its effect on the unemployment rate is: A. technological progress. B. the use of temporary workers. C. the nature of underemployment.
-
What are the five account types used in financial accounting?
-
In Problem use a sign chart to solve each inequality. Express answers in inequality and interval notation. x 3 < 4x
-
The following table shows the rates of total return in successive years from 2004 to 2008 for the Sprott Canadian Equity Fund and for the benchmark Toronto Stock Exchange S&P/TSX Composite Index. By...
-
Sunbeam Corporation manufactures and sells a variety of small household appliances, including toasters, food processors, and waffle grills. Exhibit 3.26 presents a statement of cash flows for Sunbeam...
-
Common-size analysis is a simple way to make financial statements of different firms comparable. What are possible shortcomings of comparing two different firms using common-size analysis?
-
Firm A reports an increase in earnings per share; Firm B reports a decrease in earnings per share. Is this unconditionally informative about each firms performance? If not why is earnings per share...
-
American Blossom management is planning to make a $3.7 million loan to a French firm. Currently, LIBOR is at 0.55 percent. American management considers a default risk premium of 1.10 percent, a...
-
The following account balances are for Ping Chung, Certified Public Accountant, as of April 30, 20X1. Cash Accounts receivable $120,000 48,000 Maintenance expense 21,400 Advertising expense 17,060...
-
Abbott Equipment leased a protein analyzer to Werner Chemical, Inc., on September 30, 2021. Abbott purchased the machine from NutraLabs, Inc., at a cost of $5 million. The five-year lease agreement...
Study smarter with the SolutionInn App