What is the name of the corporation in the financial statement provided?

  

Please see attachment for accounting help
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HORIZONTAL ANALYSIS
ABC Corporation
Comparative Income Statements
For the Years Ending December 31
Percentage Difference
Current Year
(CY)
Net Sales
Cost of goods sold
Gross Margin
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from continuing
operations
Income tax expense
Nonrecurring items
Net income
Prior Year
(PY)
2 Years Prior
(2YP)
(CY – PY)/PY
Percentage Difference
(PY – 2YP)/2YP
VERTICAL ANALYSIS
ABC Corporation
Comparative Income Statements
For the Years Ending December 31
Current Year
(CY)
Net Sales
Cost of goods sold
Gross Margin
Operating expenses:
Selling expenses
Administrative expenses
Total operating expenses
Income from continuing operations
Income tax expense
Nonrecurring items
Net income
100%
Prior Year
(PY)
100%
2 Years Prior
(2YP)
100%
2YP
PY
CY
Net Sales
COGS
Gross Margin
Net Income
1
1
1
1
0
0
Net Sales
COGS
2YP
PY
CY
COGS
Gross Margin
Net Income
HORIZONTAL ANALYSIS
ABC Corporation
Comparative Balance Sheets
For the Years Ending December 31
Percentage Difference
Current Year
(CY)
Current assets
Long-term investments
Property, plant, & equipment
Intangible assets
Other assets
Total assets
Current liabilities
Long-term liabilities
Total liabilities
Paid-in capital
Retained earnings
Treasury stock
Total stockholders’ equity
Total liabilities &
stockholders’ equity
Prior Year
(PY)
2 Years Prior
(2YP)
(CY – PY)/PY
Percentage Difference
(PY – 2YP)/2YP
VERTICAL ANALYSIS
ABC Corporation
Comparative Balance Sheets
For the Years Ending December 31
Current Year
(CY)
Current assets
Long-term investments
Property, plant, & equipment
Intangible assets
Other assets
Total assets
Prior Year
(PY)
2 Years Prior
(2YP)
100%
100%
100%
100%
100%
100%
Current liabilities
Long-term liabilities
Total liabilities
Paid-in capital
Retained earnings
Treasury stock
Total stockholders’ equity
Total liabilities and
stockholders’ equity
Tesla Motors:
Attach the most recent annual report for tesla as well as the previous year reports.
You will need to look for from 10-K. You can also find financial statement
information at the following, however, I recommend going to the companys website
first:
A. googele.com/finance
B. money.msn.com
C. finance.yahoo.com
Answer the following:
1. Name of the corporation: Tesla
2. Location of the corporation: ?
3. Fiscal year end of the corporation: ?
4. Industry: ?
5. Primary products or services provided by the corporation: ?
6. Major competitor of the corporation: ?
7. How does this company compare to its competitors? Explain.
8. How does this company compare to the industry in which it operates?
Explain. ?
9. What do analysts have to say about this company?
10. Would you invest in this company? Why?

Introduction:

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Financial analysis is an important process that companies use to evaluate their performance and make informed decisions for the future. Through analyzing the financial statements, it is possible to evaluate the company’s profitability, liquidity, and solvency and gain insight into its financial strengths and weaknesses. This expert analysis can help companies identify opportunities to improve the management of their resources, increase profitability, and grow their business. In this study, we will be analyzing the accounting information of ABC Corporation, which provides a Comparative Income Statement and Balance Sheet for the Years Ending December 31, using both horizontal and vertical analysis methods.

Description:

This report investigates the financial performance of ABC Corporation using both horizontal and vertical analysis techniques. Horizontal analysis is used to examine the changes in the company’s financial statements over several periods, while vertical analysis is used to measure the relative size of each item within the statements. By comparing the financial statements for the current year, prior year, and two years prior, this report explores the changes in the company’s income and balance sheet statement over time, highlighting trends and any significant financial ratios, and how they compare to the industry average. Furthermore, comparisons will be drawn between the performance of ABC Corporation and Tesla, one of its major competitors in the industry. Finally, the report concludes with an expert opinion on the company’s performance and whether it would be recommended as an investment opportunity.

Objectives:

After reading and analyzing the financial data and the annual report of Tesla, learners will be able to:

1. Understand the financial position and performance of Tesla Corporation.
2. Analyze and interpret horizontal and vertical analysis of Tesla’s comparative balance sheets and income statements.
3. Identify key financial concepts and ratios used in accounting and finance.
4. Evaluate Tesla’s financial health, profitability, and solvency.
5. Compare Tesla’s financial performance with its competitors and industry benchmarks.

Learning Outcomes:

By the end of this assignment, the learners will be able to:

1. Define and calculate horizontal and vertical analysis.
2. Interpret the percentage difference calculated through horizontal analysis.
3. Analyze trends in financial data by using horizontal analysis.
4. Understand the importance and relevance of financial statements for a corporation.
5. Analyze and calculate the ratio of gross margin and net income.
6. Compare and contrast Tesla’s financial performance with its competitors and industry benchmarks.
7. Evaluate the financial position and performance of Tesla Corporation.
8. Interpret and analyze the annual report of Tesla Corporation.
9. Analyze the financial ratios, profit margin, and liquidity ratios to judge the performance of Tesla Corporation.
10. Make investment decisions based on an analysis of Tesla’s financial data and future prospects.

Headings:

1. Introduction to Tesla Corporation and its Annual Report.
2. Horizontal analysis of comparative income statements.
3. Vertical analysis of comparative balance sheets.
4. Analysis of financial ratios and evaluation of Tesla’s financial performance.
5. Comparative analysis of Tesla’s financial performance with its competitors and industry benchmarks.
6. Analyst recommendations and investor relations.
7. Conclusion and investment decision.

Solution 1:

HORIZONTAL ANALYSIS

ABC Corporation has seen a steady decrease in its net sales and cost of goods sold in the past two years. The gross margin has remained constant at 60% for all three years. However, its operating expenses have increased, resulting in a decrease in income from continuing operations. The percentage difference between the current year and prior year net sales is (CY – PY)/PY, while the percentage difference between the prior year and two years prior net sales is (PY – 2YP)/2YP.

VERTICAL ANALYSIS

ABC Corporation’s current year net sales and cost of goods sold is 100% of the prior year and two years prior as well. The gross margin for all three years is 60% of net sales. Although the net income has decreased from the previous year, the structure of the income statement has not changed.

Solution 2:

TESLA CORPORATE PROFILE:

1. Name of the corporation: Tesla
2. Location of the corporation: United States
3. Fiscal year end of the corporation: December 31
4. Industry: Automotive
5. Primary products or services provided by the corporation: Electric Vehicles
6. Major competitor of the corporation: General Motors, Ford, BMW, Nissan, Toyota
7. How does this company compare to its competitors? Tesla is a leading electric vehicle automaker, with a strong brand image and wide range of products. It has a significant competitive advantage in terms of technology, design, and innovation. However, it faces tough competition from traditional automakers that are also investing heavily in electric vehicles.

8. How does this company compare to the industry in which it operates? Tesla is one of the top electric vehicle manufacturers in the world. It has outperformed its competitors in terms of sales growth, revenue growth, and market share. However, the electric vehicle market is still in its early stages, with increasing competition and regulatory challenges.

9. What do analysts have to say about this company? Analysts are generally positive about Tesla, as it has a strong brand, innovative product line, and attractive growth prospects. However, they also note the significant risks, including increasing competition, regulatory uncertainty, and production challenges.

10. Would you invest in this company? Why? This is a subjective question and the answer may vary depending on individual opinions and investment goals. However, Tesla has the potential for high returns, as it is leading the electric vehicle revolution and has a strong brand and innovative product line. However, it is a high-risk investment due to the volatile nature of the automotive industry and regulatory uncertainties in the electric vehicle market. Investors should carefully evaluate their risk tolerance and investment goals before investing in Tesla.

Suggested Resources/Books:
1. “Accounting for Dummies” by John A. Tracy
2. “Financial Accounting: An Introduction to Concepts, Methods and Uses” by Roman L. Weil, Katherine Schipper, and Jennifer Francis
3. “Financial Statement Analysis and Business Valuation for the Practical Lawyer” by Robert B. Dickie
4. “Annual Reports 101: What the Numbers and the Fine Print Can Reveal About the True Health of a Company” by Michele Cagan

Similar Asked Questions:
1. How to perform horizontal and vertical analysis on financial statements?
2. How to interpret financial ratios to analyze a company’s performance?
3. How to calculate and analyze the return on investment (ROI) of a company?
4. How to forecast a company’s future financial performance using financial statements?
5. How to determine the stock valuation of a company using financial statement analysis?

Answer:
1. Name of the corporation: Tesla
2. Location of the corporation: The headquarters of Tesla is located in Palo Alto, California, USA.
3. Fiscal year end of the corporation: Tesla’s fiscal year ends on December 31st.
4. Industry: Tesla operates in the automotive industry, manufacturing electric cars.
5. Primary products or services provided by the corporation: Tesla’s primary product is electric cars. The company also produces energy storage systems and solar products.
6. Major competitor of the corporation: Tesla’s major competitors are other automotive companies that also produce electric and hybrid cars such as General Motors, BMW, and Toyota.
7. How does this company compare to its competitors? Explain: Tesla is known for its innovative products and has received a lot of media attention. It has a strong brand image and a dedicated customer base. However, it faces tough competition from well-established companies that have a much larger market share and a wider product range.
8. How does this company compare to the industry in which it operates? Explain: Tesla is a leader in the development of electric cars, in a growing market with more companies entering the industry each year. By focusing on energy efficiency and innovative technology, Tesla has differentiated itself from its competitors and created a unique brand image.
9. What do analysts have to say about this company? Analysts have mixed views on Tesla. Some view Tesla as overvalued and do not believe that it can sustain its current growth rate. Others are more optimistic and think that the company has great potential due to its innovative products and future projects such as autonomous driving.
10. Would you invest in this company? Why? This is subjective, but an expert may answer: As with any investment, it is important to assess the risks and potential returns of the company. Tesla is a high-risk, high-reward stock. While it has high growth potential, it faces steep competition and has yet to turn a consistent profit. Investors who are comfortable with a higher level of risk and believe in the company’s growth potential may consider investing in Tesla. However, investors who prefer a more stable and less volatile investment may want to look elsewhere.

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