Acct 3120 Intermediate II

Chapter 14 Debt

This assignment is based on the 10-K for the year ended December 31, 2022 forTesla, Inc. You can obtain Tesla's 10-k from its corporate web site athttps://www.tesla.com/. Financial information is available there by selecting the tab "Discover" and then "Investor Relations." You can also use the SEC's Edgar web site atTesla 2022 10K. Unless otherwise indicated, all questions relate to the current annual financial statements.

1. At December 31, 2022, Tesla's balance sheet showed:

On balance sheet:	Amount
Current portion of debt and finance leases	$1,502
Debt and finance leases, net of current portion	$1,597
Total	$3,099

In Note 11- Debt, Tesla indicates how much of these amounts are from debt and how much is from finance leases. Indicate those amounts in the following table.

		Amount from:
On balance sheet:	Amount	Debt	Finance leases
Current portion of debt and finance leases	$1,502
Debt and finance leases, net of current portion	$1,597

1. In Note 11- Debt, Tesla reports its "Schedule of Principle Maturities of Debt." This table shows how much of the total debt is due in each of the next five years and afterwards. What are the annual maturities of debt for each of these years/categories?

Year	Amount
2023
2024
2025
2026
2027
Thereafter

3. Compute the following four ratios for 2022 and 2021.Please indicate both the amounts that you used to compute the ratio and the final ratio.

Ratio:	2022	2021
Debt to Equity
Return on Assets
Return on Equity
Times Interest Earned

4. Based on your analysis of these four ratios, did Tesla's debt coverage improve in the current year? Please do not indicate whether the number computed increased or decreased but interpret what change in the ratios indicates about Tesla.