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Business, 17.10.2020 20:01 cocoapop

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 3120172016
Cash and cash equivalents$3,701,247$3,726,549
Restricted cash156,545106,741
Net receivables515,381499,142
Inventory2,263,5372,067,454
Other current assets268,365194,465
Current assets6,905,0756,594,351
Current liabilities7,674,6705,827,005
Total liabilities23,022,98016,750,167
Stockholders' equity5,965,7256,247,242
Year ended December 31,2017
Loss before income taxes$(2,209,032)
Interest expense504,592
Cash flows from operating activities(59,432)
Capital expenditures(3,748,147)
a. Compute the current ratio and quick ratio for each year.

Note: Round answers to two decimal places.

20172016
Current ratioAnswer
0.9

Answer
1.13

Quick ratioAnswerAnswer
b. Compute the debt-to-equity ratio for 2017 and 2016 and the times-interest-earned ratio for 2017.

Note: Round answers to two decimal places. Use a negative sign with your answer, if appropriate.

20172016
Debt-to-equity ratioAnswer
3.86

Answer
2.68

Times interest earned ratioAnswer
c. Compute the cash burn rate for 2017.

Note: Round answer to the nearest whole number. Use a negative sign with your answer, if appropriate.

$Answer

thousand per day

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