please do only part 3. the company name is tesla. all what you need is below

Tesla, Inc.

Notes to Consolidated Financial Statements

Note 1 Overview

Tesla, Inc. (Tesla, the Company, we, us or our) was incorporated in the State of Delaware on July 1, 2003. We design, develop, manufacture and sell high-performance fully electric vehicles and design, manufacture, install and sell solar energy generation and energy storage products. Our Chief Executive Officer, as the chief operating decision maker (CODM), organizes the Company, manages resource allocations and measures performance among two operating and reportable segments: (i) automotive and (ii) energy generation and storage.

Note 2 Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and reflect our accounts and operations and those of our subsidiaries in which we have a controlling financial interest. In accordance with the provisions of Accounting Standards Codification (ASC) 810, Consolidation, we consolidate any variable interest entity (VIE) of which we are the primary beneficiary. We form VIEs with financing fund investors in the ordinary course of business in order to facilitate the funding and monetization of certain attributes associated with solar energy systems and leases under our direct vehicle leasing programs. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if that party has the power to direct the activities of the VIE that most significantly impact the VIEs economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. We do not consolidate a VIE in which we have a majority ownership interest when we are not considered the primary beneficiary. We have determined that we are the primary beneficiary of a number of VIEs (see Note 18, Variable Interest Entity Arrangements). We evaluate our relationships with all the VIEs on an ongoing basis to ensure that we continue to be the primary beneficiary. All intercompany transactions and balances have been eliminated upon consolidation.

Reclassifications

Certain prior period balances have been reclassified to conform to the current period presentation in the consolidated financial statements and the accompanying notes as a result of the adoption of the Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows: Restricted Cash.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures in the accompanying notes. Estimates are used for, but not limited to, determining the transaction price of products and services in arrangements with multiple performance obligations and determining the amortization period of these obligations, significant economic incentive for residual value guarantee arrangements, sales return reserves, the collectability of accounts receivable, inventory valuation, fair value of long-lived assets, goodwill, fair value of financial instruments, residual value of operating lease vehicles, depreciable lives of property and equipment and solar energy systems, fair value and residual value of solar energy systems subject to leases, warranty liabilities, income taxes, contingencies, the accrued liability for solar energy system performance guarantees, determining lease pass-through financing obligations, the discount rates used to determine the fair value of investment tax credits, the valuation of build-to-suit lease assets, fair value of interest rate swaps and inputs used to value stock-based compensation. In addition, estimates and assumptions are used for the accounting for business combinations, including the fair values and useful lives of acquired assets, assumed liabilities and noncontrolling interests. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates.

Revenue Recognition

Adoption of new accounting standards

ASU 2014-09, Revenue - Revenue from Contracts with Customers. On January 1, 2018, we adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (new revenue standard) using the modified retrospective method. As a policy election, the new revenue standard was applied only to contracts that were not substantially completed as of the date of adoption. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the January 1, 2018 opening balance of accumulated deficit. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods.

A majority of our automotive sales revenue is recognized when control transfers upon delivery to customers. For certain vehicle sales where revenue was previously deferred as an in-substance operating lease, such as certain vehicle sales to customers or leasing partners with a resale value guarantee, we now recognize revenue when the vehicles are shipped as a sale with a right of return. As a result, the corresponding operating lease asset, deferred revenue, and resale value guarantee balances as of December 31, 2017, were reclassified to accumulated deficit as part of our adoption entry. Furthermore, the warranty liability related to such vehicles has been accrued as a result of the change from in-substance operating leases to vehicle sales. Prepayments on contracts that can be cancelled without significant penalties, such as vehicle maintenance plans, have been reclassified from deferred revenue to customer deposits. Refer to the Automotive Revenue and Automotive Leasing Revenue sections below for further discussion of the impact on various categories of vehicle sales.

Following the adoption of the new revenue standard, the revenue recognition for our other sales arrangements, including sales of solar energy systems, energy storage products, services, and sales of used vehicles, remained consistent with our historical revenue recognition policy. Under our lease pass-through fund arrangements, we do not have any further performance obligations and therefore reclassified all investment tax credit (ITC) deferred revenue as of December 31, 2017, to accumulated deficit as part of our adoption entry. The corresponding effects of the changes to lease pass-through fund arrangements are also reflected in our non-controlling interests in subsidiaries. Additionally, we have considered the impact from any new revenue arrangements in the current year that would have been accounted for differently under ASC 605, Revenue Recognition, as an adjustment from adoption of the new revenue standard.

ACCT 2200 Company Analysis Project & Presentation-100 points This is a group project, which will consist of a written project and an oral presentation. The project is due on the date of your group presentation at the beginning of class. Have one person from your group submit your Excel file on Canvas The purpose of this assignment is to analyze a company and make an informed decision about the company's past performance and its potential, while utilizing the basic functionality of Excel to complete your analysis. Each group will pick a different public company (except companies in the Financial Services industry). Companies will be given based on a first come first serve basis. The earlier you select a company, the more likely you are to get the company you want. One person from your group must email me the name of your company and the ticker symbol (how companies are identified on stock exchanges). Next, find the most recent annual report (10-K) from the following website, searching by the company's name or ticker symbol: https://www.SCG Rovedsar/searchedear/companysearch.html. You will download the Excel version of the financial statements for copy them into Excel) and perform all of your ratios using Excel (you will also need the PDF version for Parts 1 and 3). See steps below. EDGAR Search Results company finger) SOUTHWEST AIRLINES CO CIKR00000 ASH Click on "Interactive Data by most recent 10K, scroll until you find it Proce Click on "Documents" to obtain PDF version of 10K (needed for Parts 1 and 3) View Filing Data Click on "View Excel Document" SOUTHWEST AIRLINES CO C IK: 0000230 ACCT 2200 Company Analysis Project Presentation 100 points WRITTEN PROIECT SO POINTS) ALL PARTS BELOW are documented within the Excel file you downloaded PARTI Quickly scan Items 1-4 in the 10-K and discuss the company's operations (what do they do, what is their industry, ete) in a short paragraph using your own words. Additionally, from items 1-4. include one fact about the company that you found interesting did not know beforehand make sure you are explicitly clear when stating what you found interesting) PARTI Using formulas in Excel that utilize the exported financial data from above, calculate each of the ratios listed below for the most recent year and the prior year, on a separate tab within Excel. All numbers in the ratio calculations must be linked to the financial statement tabs. No numbers can be hard coded in the formula For example, the current ratio would look something like this type Balance Sheet B5/Balance Sheet B16 where B5 is current assets and 316 is current liabilities After calculating the ratios, briefly explain whether the company is performing better, similar to, or worse in comparison to the prior year (FOR EACH RATIO). Do not just state that they are doing better, because it is higher, you must explain why. The goal is to demonstrate that you know what the ratio means not just state what happened to the numbers, which changed the ratio. Ifa ratio is not applicable, explain why. Round all ratios to two decimal places. A. Net Profit Margin-Net Income / Revenues x 100 B. Gross Profit Margin - (Net Sales Revenue - Cost of Goods Sold) / Net Sales Revenue C. "Fixed Asset Turnover - Net Revenue /(Average Net Fixed Assets) D. "ROE (Net Income - Preferred Dividends) / (Average Common Stockholders Equity) x 100 E. Current Ratio - Current Assets / Current Liabilities F. "Days to Collect = 365 / Receivables Turnover Receivables Turnover Sales or Revenue / Average Receivables G. "Days to Sell - 365 / Inventory Turnover Inventory Turnover Cost of Goods Sold / Average Inventory H. Debt to Assets - Total Liabilities/Total Assets *These ratios require an average calculation. In order to calculate the prior year average for your comparison, you will have to download the Excel version of the prior year 10K (scroll until you find it on the SEC website). The easiest way to complete this is to copy the prior year balance sheet into your Excel workbook onto a new tab or below the current year. PART III Review the financial statement footnotes (utilizing the PDF version) to obtain information regarding the methods used for revenue recognition as well as one other significant accounting policy (your choice. It is best to pick a policy that we have learned about, i.e. Inventory, accounts receivable, property and equipment, expenses). These are generally listed in Note 1 after the financial statements (should be labeled Summary of Significant Accounting Policies). Describe how each method affects the financial statements and the decisions made by management (how do their accounting policies affect the operational decisions made by management, i.e. how they run their business). Do not just copy and paste the wording from the report. LABEL EACH POLICY CLEARLY AS WELL AS THE DECISIONS MADE BY MANAGEMENT. ACCT 2200 Company Analysis Project & Presentation-100 points This is a group project, which will consist of a written project and an oral presentation. The project is due on the date of your group presentation at the beginning of class. Have one person from your group submit your Excel file on Canvas The purpose of this assignment is to analyze a company and make an informed decision about the company's past performance and its potential, while utilizing the basic functionality of Excel to complete your analysis. Each group will pick a different public company (except companies in the Financial Services industry). Companies will be given based on a first come first serve basis. The earlier you select a company, the more likely you are to get the company you want. One person from your group must email me the name of your company and the ticker symbol (how companies are identified on stock exchanges). Next, find the most recent annual report (10-K) from the following website, searching by the company's name or ticker symbol: https://www.SCG Rovedsar/searchedear/companysearch.html. You will download the Excel version of the financial statements for copy them into Excel) and perform all of your ratios using Excel (you will also need the PDF version for Parts 1 and 3). See steps below. EDGAR Search Results company finger) SOUTHWEST AIRLINES CO CIKR00000 ASH Click on "Interactive Data by most recent 10K, scroll until you find it Proce Click on "Documents" to obtain PDF version of 10K (needed for Parts 1 and 3) View Filing Data Click on "View Excel Document" SOUTHWEST AIRLINES CO C IK: 0000230 ACCT 2200 Company Analysis Project Presentation 100 points WRITTEN PROIECT SO POINTS) ALL PARTS BELOW are documented within the Excel file you downloaded PARTI Quickly scan Items 1-4 in the 10-K and discuss the company's operations (what do they do, what is their industry, ete) in a short paragraph using your own words. Additionally, from items 1-4. include one fact about the company that you found interesting did not know beforehand make sure you are explicitly clear when stating what you found interesting) PARTI Using formulas in Excel that utilize the exported financial data from above, calculate each of the ratios listed below for the most recent year and the prior year, on a separate tab within Excel. All numbers in the ratio calculations must be linked to the financial statement tabs. No numbers can be hard coded in the formula For example, the current ratio would look something like this type Balance Sheet B5/Balance Sheet B16 where B5 is current assets and 316 is current liabilities After calculating the ratios, briefly explain whether the company is performing better, similar to, or worse in comparison to the prior year (FOR EACH RATIO). Do not just state that they are doing better, because it is higher, you must explain why. The goal is to demonstrate that you know what the ratio means not just state what happened to the numbers, which changed the ratio. Ifa ratio is not applicable, explain why. Round all ratios to two decimal places. A. Net Profit Margin-Net Income / Revenues x 100 B. Gross Profit Margin - (Net Sales Revenue - Cost of Goods Sold) / Net Sales Revenue C. "Fixed Asset Turnover - Net Revenue /(Average Net Fixed Assets) D. "ROE (Net Income - Preferred Dividends) / (Average Common Stockholders Equity) x 100 E. Current Ratio - Current Assets / Current Liabilities F. "Days to Collect = 365 / Receivables Turnover Receivables Turnover Sales or Revenue / Average Receivables G. "Days to Sell - 365 / Inventory Turnover Inventory Turnover Cost of Goods Sold / Average Inventory H. Debt to Assets - Total Liabilities/Total Assets *These ratios require an average calculation. In order to calculate the prior year average for your comparison, you will have to download the Excel version of the prior year 10K (scroll until you find it on the SEC website). The easiest way to complete this is to copy the prior year balance sheet into your Excel workbook onto a new tab or below the current year. PART III Review the financial statement footnotes (utilizing the PDF version) to obtain information regarding the methods used for revenue recognition as well as one other significant accounting policy (your choice. It is best to pick a policy that we have learned about, i.e. Inventory, accounts receivable, property and equipment, expenses). These are generally listed in Note 1 after the financial statements (should be labeled Summary of Significant Accounting Policies). Describe how each method affects the financial statements and the decisions made by management (how do their accounting policies affect the operational decisions made by management, i.e. how they run their business). Do not just copy and paste the wording from the report. LABEL EACH POLICY CLEARLY AS WELL AS THE DECISIONS MADE BY MANAGEMENT