What is meant by “presentation of financial statement information in common-size amounts rather than dollar amounts?” Why is this type of presentation sometimes more meaningful than the use of actual dollar amounts? Why is a trend just as important if not more important than information that pertains to only one year? Review the attachments of cash flows for Tesla Motors Inc. Discuss the cash position of the company by considering the following:
- How can you explain the difference between cash flow from operating activities and the net loss for this company?
- How is Tesla repaying its debt?
- Does the company’s cash flow position appear to be improving?