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...

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 EDGAR
https://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.