Question

In: Accounting

Analyzing and Interpreting Income Disclosures Sales information for Tesla Inc. follows. Year Ended December 31 ($...

Analyzing and Interpreting Income Disclosures

Sales information for Tesla Inc. follows.

Year Ended December 31 ($ thousands) 2018 2017 2016
Automotive sales $26,447,283 $14,509,078 $6,147,908
Automotive leasing 971,807 1,659,822 1,294,990
Total automotive revenues 27,419,090 16,168,900 7,442,898
Services and other 2,364,770 1,101,304 701,958
Total automotive & services and other segment revenue 29,783,860 17,270,204 8,144,856
Energy generation and storage segment revenue 2,332,866 1,897,652 199,533
Total revenues $32,116,726 $19,167,856 $8,344,389

Automotive sales revenue includes revenues related to sale of new Model S, Model X and Model 3 vehicles, including access to our Supercharger network, internet connectivity, Autopilot, full self-driving and over-the-air software updates.

Automotive leasing revenue includes the amortization of revenue for Model S and Model X vehicles under direct lease agreements as well as those sold with resale value guarantees accounted for as operating leases under lease accounting. We do not yet offer leasing for Model 3 vehicles.

Services and other revenue consists of non-warranty after-sales vehicle services, sales of used vehicles, sales of electric vehicle components and systems to other manufacturers, retail merchandise, and sales by our acquired subsidiaries to third party customers.

Energy generation and storage revenues consists of the sale of solar energy systems and energy storage systems to residential, small commercial, and large commercial and utility grade customers.

Compute the relative size of sales revenue from the four types of revenue Tesla discloses. (Hint: Scale each type of revenue by total revenue.)
Round answers to the nearest whole percentage.

As % of Total Revenue 2018 2017 2016
Automotive sales Answer Answer Answer
Automotive leasing Answer Answer Answer
Services and other Answer Answer Answer
Energy generation & storage Answer Answer Answer

Compute the growth in sales revenue for both years from each of the four types of revenue.

  • Round answers to the nearest whole percentage.
  • Use a negative sign with answers, when appropriate.
% Growth 2018 2017
Automotive sales Answer Answer
Automotive leasing Answer Answer
Services and other Answer Answer
Energy generation & storage Answer Answer

Solutions

Expert Solution

Year Ended December 31 ($ thousands) 2018 2017 2016
Automotive sales $          26,447,283 $          14,509,078 $            6,147,908
Automotive leasing $               971,807 $            1,659,822 $            1,294,990
Services and other $            2,364,770 $            1,101,304 $               701,958
Energy generation and storage segment revenue $            2,332,866 $            1,897,652 $               199,533
Total revenues $          32,116,726 $          19,167,856 $            8,344,389
a) Relative size of sales revenue from the four types of revenue
Calculation = Revenue for Revenue Type for particular year/Total Revenue for particular year
As % of Total Revenue 2018 2017 2016
Automotive sales 82.3% 75.7% 73.7%
Automotive leasing 3.0% 8.7% 15.5%
Services and other 7.4% 5.7% 8.4%
Energy generation & storage 7.3% 9.9% 2.4%
b) Growth in sales revenue for both years from each of the four types of revenue.
Calculation = (Revenue for Revenue Type for particular year-Revenue for Revenue Type for previous year)/ Revenue for Revenue Type for previous year
% Growth 2018 2017
Automotive sales 82.3% 136.0%
Automotive leasing -41.5% 28.2%
Services and other 114.7% 56.9%
Energy generation & storage 22.9% 851.0%

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Analyzing and Interpreting Income Components and Disclosures The income statement for Xerox Corporation follows. Year ended...
Analyzing and Interpreting Income Components and Disclosures The income statement for Xerox Corporation follows. Year ended December 31 (in millions) 2010 2009 2008 Revenue Equipment sales $3,857 $3,550 $4,679 Supplies, paper and other 3,377 3,096 3,646 Sales 7,234 6,646 8,325 Service, outsourcing and rentals 13,739 7,820 8,485 Finance income 660 713 798 Total Revenues 21,633 15,179 17,608 Cost and expenses Cost of sales 4,741 4,395 5,519 Cost of service, outsourcing and rentals 9,195 4,488 4,929 Equipment financing interest 246 271...
The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows
The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows: Delta-tec Inc. Income Statement (selected items) For the Year Ended December 31, 2016   1 Income from operations $299,700.00 2 Gain on sale of investments 17,800.00 3 Less unrealized loss on trading investments 72,500.00 4 Net income $245,000.00   The balance sheet dated December 31, 2015, showed a Retained Earnings balance of $825,000. During 2016, the company purchased trading investments for the first time...
The information that follows is for Becky’s Baskets for the year ended December 31, 2017 and...
The information that follows is for Becky’s Baskets for the year ended December 31, 2017 and covers questions 20-27. Sales                                                                            2,000 baskets at $50 per basket = $100,000                   Costs: (2,000 baskets produced and sold)             Variable Costs                                                                                                Total Cost                         Direct materials                                                                                  16,000                         Direct labor                                                                                        14,000 Manufacturing overhead                                                                  16,000                         Selling and Administrative Costs                                                       10,000             Fixed Costs                         Manufacturing overhead                                                                    30,000                         Selling and...
Income Statement For the Year Ended December 31, 2018 Sales                                &nb
Income Statement For the Year Ended December 31, 2018 Sales                                                               $8,500,000 Manufacturing Expenses Variable                                $3,250,000 Fixed overhead                       640,000       3,890,000 Gross Margin                                                  $4,610,000 Selling and administrative expenses Commissions                           $580,000 Fixed marketing expenses       300,000 Fixed admin expenses               450,000      1,330,000 Net Operating Income                                     $3,280,000 Fixed Interest expenses                                       230,000     Income before Taxes                                      $3,050,000      Income Taxes (21%)                                            640,500 Net Income                                                     $2,409,500 Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales....
Income Statement For the Year Ended December 31, 2018 Sales                                &nb
Income Statement For the Year Ended December 31, 2018 Sales                                                               $8,500,000 Manufacturing Expenses Variable                                $3,250,000 Fixed overhead                       640,000       3,890,000 Gross Margin                                                  $4,610,000 Selling and administrative expenses Commissions                           $580,000 Fixed marketing expenses       300,000 Fixed admin expenses               450,000      1,330,000 Net Operating Income                                     $3,280,000 Fixed Interest expenses                                       230,000     Income before Taxes                                      $3,050,000      Income Taxes (21%)                                            640,500 Net Income                                                     $2,409,500 Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales....
The information that follows is for Nancy’s Name Tents for the year ended December 31, 2015...
The information that follows is for Nancy’s Name Tents for the year ended December 31, 2015 and covers questions 26-31. All per unit costs below are based on the production and sale of 3,000 name tents. The relevant range is from 0 - 3,500 units. Sales                                                                                                    $50 sales price per name tent                               Costs: Variable Costs                                                Per Tent (3,000 name tents produced and sold)                              Direct materials                                                          8                         Direct labor                                                                7 Manufacturing overhead                             ...
Information for Entity A for the year ended December 31, 2019 ($ in millions):    Income...
Information for Entity A for the year ended December 31, 2019 ($ in millions):    Income from continuing operations before tax $155 Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income 16 Depreciation deducted on tax return in excess of depreciation expense 32 Permanent differences (all related to operating income): Entertainment expenses (none are deductible under 2017 Tax Act) 8 Interest received on municipal bonds 3 Balance in deferred tax asset...
Information for Entity A for the year ended December 31, 2019 ($ in millions):    Income...
Information for Entity A for the year ended December 31, 2019 ($ in millions):    Income from continuing operations before tax $155 Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income 16 Depreciation deducted on tax return in excess of depreciation expense 32 Permanent differences (all related to operating income): Entertainment expenses (none are deductible under 2017 Tax Act) 8 Interest received on municipal bonds 3 Balance in deferred tax asset...
the segmented income statement for XYZ Company for the year ended December 31, 2016, follows: XYZ...
the segmented income statement for XYZ Company for the year ended December 31, 2016, follows: XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2016 Total Company Product A Product B Product C Sales $ 592,000 $ 297,000 $ 118,000 $ 177,000 Variable expenses 273,000 154,000 49,000 70,000 Contribution margin $ 319,000 $ 143,000 $ 69,000 $ 107,000 Fixed expenses 283,000 165,000 47,000 71,000 Operating income $ 36,000 $ (22,000 ) $ 22,000 $ 36,000 The company is...
the accountant's Company Income Statement For the Year Ended December 31, 2018 Sales                            &n
the accountant's Company Income Statement For the Year Ended December 31, 2018 Sales                                                               $8,500,000 Manufacturing Expenses Variable                                $3,250,000 Fixed overhead                       640,000       3,890,000 Gross Margin                                                  $4,610,000 Selling and administrative expenses Commissions                           $580,000 Fixed marketing expenses       300,000 Fixed admin expenses               450,000      1,330,000 Net Operating Income                                     $3,280,000 Fixed Interest expenses                                       230,000     Income before Taxes                                      $3,050,000      Income Taxes (21%)                                            640,500 Net Income                                                     $2,409,500 Your company is considering out-sourcing the sales and marketing to an agency specializing in these...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT