Reference no: EM132838868
Question - Compute and Interpret Liquidity and Solvency Ratios
Selected balance sheet, income statement and cash flow statement information from Tesla, Inc. for 2017 and 2016 follows ($ thousands).
|
December 31
|
2017
|
2016
|
|
Cash and cash equivalents
|
$3,367,914
|
$3,393,216
|
|
Restricted cash
|
155,323
|
105,519
|
|
Net receivables
|
515,381
|
499,142
|
|
Inventory
|
2,263,537
|
2,067,454
|
|
Other current assets
|
268,365
|
194,465
|
|
Current assets
|
6,570,520
|
6,259,796
|
|
Current liabilities
|
7,674,670
|
5,827,005
|
|
Total liabilities
|
23,022,980
|
16,750,167
|
|
Stockholders' equity
|
5,632,392
|
5,913,909
|
Year ended December 31, 2017
Loss before income taxes $(2,209,032)
Interest expense 471,259
Cash flows from operating activities (60,654)
Capital expenditures (3,414,814)
Required -
a. Compute the current ratio and quick ratio for each year.
b. Compute the debt-to-equity ratio for 2017 and 2016 and the times-interest-earned ratio for 2017.
c. Compute the cash burn rate for 2017.