Overview
Working capital management is critical to an organization’s ability to meet its short-term obligations. When proposing new projects or investment ideas for corporations, it is critical to consider working capital red flags such as excess credit use by the business or a low cash balance. Managing such issues early on can help corporations acquire a competitive advantage in the marketplace.
Prompt
Using the business you selected for Project Two, complete the calculations for determining working capital, and describe their relevance in assessing financial health.
Specifically, you must address the following ru
ic criteria:
Financial Statement(s): Explain the various financial statement(s) needed to calculate a business’s working capital and how each financial statement is used. Provide examples to support your claims.
Working Capital’s Role: Discuss how effective working capital management supports a healthy business.
Working Capital Interpretation: Use the appropriate formula to calculate working capital, then discuss the business’s cu
ent financial liquidity position.
For example, does the business have sufficient working capital on hand to address bills to suppliers? Will there be potential cash inflow at the end of the year?
Working Capital Management Direction: Discuss the cu
ent direction of the business regarding working capital management.
Keep in mind that financial statements reflect a specific moment or period of time and the value of the business’s working capital during that period. To get a better understanding of the direction in which a business is going, use the business’s balance sheets from Mergent Online to compare the business’s value today against its value from one year ago.
Guidelines for Submission
Your submission should be a 2 to 3-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Any sources should be cited according to APA style.
Module Five Activity Ru
ic
Criteria Proficient (100%) Needs Improvement (70%) Not Complete (0%) Value
Financial Statement Explains the various financial statement(s) needed to calculate a business’s working capital and how each statement is used Shows progress toward proficiency, but with e
ors or omissions; areas for improvement may include explaining in more detail the various financial statement(s) needed to calculate a business’s working capital and how each statement is used Does not attempt criterion 15
Working Capital’s Role Discusses how effective working capital management supports a healthy business Shows progress toward proficiency, but with e
ors or omissions; areas for improvement may include discussing in more detail how effective working capital management supports a healthy business Does not attempt criterion 20
Working Capital Interpretation Uses the appropriate formula to calculate working capital and discusses the business’s cu
ent financial liquidity position Shows progress toward proficiency, but with e
ors or omissions; areas for improvement may include discussing in more detail the business’s cu
ent financial liquidity position or using the appropriate formula to calculate the working capital Does not attempt criterion 20
Working Capital Management Direction Discusses the cu
ent direction of the business regarding working capital management Shows progress toward proficiency, but with e
ors or omissions; areas for improvement may include discussing in more detail the cu
ent direction of the business regarding working capital management Does not attempt criterion 25
Articulation of Response Clearly conveys meaning with co
ect grammar, sentence structure, and spelling, demonstrating an understanding of audience and purpose Shows progress toward proficiency, but with e
ors in grammar, sentence structure, and spelling, negatively impacting readability Submission has critical e
ors in grammar, sentence structure, and spelling, preventing understanding of ideas 20
Total: 100%
SKM_658e XXXXXXXXXX
Untitled Spreadsheet
BalanceSheet
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it
Tesla Inc (NMS: TSLA)
Exchange rate used is that of the Year End reported date
Standardized Quarterly Balance Sheet
Report Date 03/31/2021
1st Quarte
Cu
ency USD
Audit Status Not Qualified
Consolidated Yes
Scale Thousands
Cash & Equivalents 17,141,000.00
Cash & Equivs & ST Investments 17,141,000.00
Receivables (ST) 1,890,000.00
Inventories 4,132,000.00
Other Cu
ent Assets 1,542,000.00
Total Cu
ent Assets 24,705,000.00
Gross Property Plant & Equip 19,257,000.00
Accumulated Depreciation 5,389,000.00
Net Property Plant & Equip 13,868,000.00
Receivables (LT) -
Intangible Assets 505,000.00
Other Assets 13,894,000.00
Total Assets 52,972,000.00
Accounts Payable & Accrued Exps 10,139,000.00
Accounts Payable 6,648,000.00
Accrued Expenses 3,491,000.00
Cu
ent Debt 1,819,000.00
Other Cu
ent Liabilities 2,919,000.00
Total Cu
ent Liabilities 14,877,000.00
LT Debt & Leases 9,053,000.00
Defe
ed LT Liabilities 1,438,000.00
Minority Interests 1,448,000.00
Other Liabilities 3,139,000.00
Total Liabilities 29,955,000.00
Common Share Capital 1,000.00
Additional Paid-In Capital 27,623,000.00
Retained Earnings (4,750,000.00)
Accum Other Comprehensive Income 143,000.00
Other Equity - 0
Total Equity 23,017,000.00
Total Liabilities & Equity 52,972,000.00
IncomeStatement
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it
Tesla Inc (NMS: TSLA)
Exchange rate used is that of the Year End reported date
Standardized Quarterly Income Statement
Report Date 03/31/2021
1st Quarte
Cu
ency USD
Audit Status Not Qualified
Consolidated Yes
Scale Thousands
Sales Revenue 8,705,000.00
Other Revenue 1,684,000.00
Total Revenue 10,389,000.00
Direct Costs 8,174,000.00
Gross Profit 2,215,000.00
Selling General & Admin 1,056,000.00
Research & Development 666,000.00
Restruct Remediation & Impair (101,000.00)
Other Operating Expense - 0
Total Indirect Operating Costs 1,621,000.00
Operating Income 594,000.00
Interest Income (89,000.00)
Other Non-Operating Income 28,000.00
Total Non-Operating Income (61,000.00)
Earnings Before Tax 533,000.00
Taxation 69,000.00
Minority Interests 26,000.00
Extraordinary Items - 0
Accounting Changes - 0
Net Income 438,000.00
Preference Dividends & Similar - 0
Net Income to Common 438,000.00
Average Shares Basic 961,000.00
EPS Net Basic 0.46
EPS Continuing Basic 0.46
Average Shares Diluted 1,133,000.00
EPS Net Diluted 0.39
EPS Continuing Diluted 0.39
Shares Outstanding 963,000.00
CashFlow
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Tesla Inc (NMS: TSLA)
Exchange rate used is that of the Year End reported date
Standardized Quarterly Cumulative CF
Report Date 03/31/2021
1st Quarte
Cu
ency USD
Audit Status Not Qualified
Consolidated Yes
Scale Thousands
Net Income (Cumu) 464,000.00
Adjustments from Inc to Cash (Cumu) 1,189,000.00
Change in Working Capital (Cumu) (12,000.00)
Cash Flow from Operations (Cumu) 1,641,000.00
Purchase of Pty Plant & Equip (Cumu) (1,360,000.00)
Change in Business Activities (Cumu) -
Other Investing Cash Flows (Cumu) (1,222,000.00)
Cash Flow from Investing (Cumu) (2,582,000.00)
Change in LT Debt (Cumu) (1,162,000.00)
Change in Equity (Cumu) 183,000.00
Payment of Dividends (Cumu) (32,000.00)
Other Financing Cash Flows (Cumu) (5,000.00)
Cash Flow from Financing (Cumu) (1,016,000.00)
Effect of Exchange Rate (Cumu) (221,000.00)
Change in Cash (Cumu) (2,178,000.00)
Opening Cash (Cumu) 19,901,000.00
Closing Cash 17,723,000.00
Depn & Amortn (CF) (Cumu) 621,000.00
Net Purch of Pty Plant & Equip (Cumu) (1,360,000.00)