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Financial Statement Analysis Project is designed to integrate the knowledge you gained in the class and analyze financial statements of a public company. You need to obtain company’s Financial...

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Financial Statement Analysis Project is designed to integrate the knowledge you gained in the class and analyze financial statements of a public company. You need to obtain company’s Financial Statements and Notes to Financial Statements from the EDGARhttps://www.sec.gov/edgar/searchedgar/companysearch.html?, which is the online portal of the Security and Exchange Commission (SEC), for the past 4 years.Important aspect of financial statement analysis is to understand how company’s business activities affect certain ratios and indicators. When you perform your analysis, you may reflect back to business decisions you might have made in CAPSIM/MGMT 530 and their effect the ratios and financial statement or business decision that you might have observed in your workplace.

This term we will be analyzing a very well know and a very controversial firm – Tesla Inc. Throughout this document I will be referring to Tesla as “Company”.

Part 5: Forecast of EPS

Determine the latest quarterly reporting that company provided. When will be the next earnings announcement? Obtain Balance Sheet and Income Statements for all quarterly reporting in current fiscal year.

Make your prediction of the next quarter earnings per share (EPS). Clearly indicate what quarter you are predicting. Be prepared to explain how you arrived at your forecast and what assumptions you made.

Hints (procedure).

1.Forecast next quarter Revenues based on prior growth and management guidance or any other information you have.

2.Forecast the Cost of goods sold (or cost of sales) based on the prior trends that you observed from Part2a and/or quarterly reports in the current fiscal year, management guidance, and any other information that you might have.

3.Forecast other expense items that company has based on the prior percentages and any new information you might have. Be prepared to explain your assumptions.

4.Calculate Net Income before tax

5.Apply the income tax rate from the prior quarter (you can modify it if you have any new information).

6.Calculate Net Income after tax

Determine Number of Shares Outstanding. Divide Net Income after tax on Number of Shares Outstanding to obtain EPS.

Answered Same Day May 31, 2021

Solution

Neenisha answered on May 31 2021
127 Votes
Balance Shett
    Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions    Dec. 31, 2019    Mar. 31, 2020        Growth        Forecast
    Cu
ent assets
    Cash and cash equivalents    $ 6,268    $ 8,080
    Accounts receivable, net    1,324    1,274
    Inventory    3,552    4,494
    Prepaid expenses and other cu
ent assets    959    1,045
    Total cu
ent assets    12,103    14,893
    Property, plant and equipment, net    10,396    10,638
    Operating lease right-of-use assets    1,218    1,197
    Intangible assets, net    339    323
    Goodwill    198    193
    Other non-cu
ent assets    1,470    1,373
    Total assets    34,309    37,250
    Cu
ent liabilities
    Accounts payable    3,771    3,970
    Accrued liabilities and other    3,222    2,825
    Defe
ed revenue    1,163    1,186
    Customer deposits    726    788
    Cu
ent portion of debt and finance leases    1,785    3,217
    Total cu
ent liabilities    10,667    11,986
    Debt and finance leases, net of cu
ent portion    11,634    10,666        -8.32%    Based on last quarter growth    9778.5418600653
    Defe
ed revenue, net of cu
ent portion    1,207    1,199
    Other long-term liabilities    2,691    2,667
    Total liabilities    26,199    26,518
    Commitments and contingencies (Note 12)         
    Redeemable noncontrolling interests in subsidiaries    643    632
    Convertible senior notes (Note 10)        60
    Stockholders' equity
    Prefe
ed stock; $0.001 par value;...
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