Question

Fitbit, Inc., reported the following information for the nine-month period ended October 1, 2016. Items are in thousands of dollars.

Accounts Payable	$	519,700
Accounts Receivable		461,600
Advertising Expense		80,100
Cash (January 1, 2016)		664,700
Cash (October 1, 2016)		675,130
Common Stock		832,200
Equipment		255,700
Office Expenses		114,200
Income Tax Expense		18,600
Interest Expense		2,900
Inventories		215,300
Notes Payable		54,000
Operating Expenses		263,400
Retained Earnings (January 1, 2016)		260,600
Sales Revenue		507,130
Supplies		86,700

Other cash flow information:
Cash received from issuing common stock	$	39,430
Cash paid to purchase equipment		67,100
Cash paid to suppliers and employees		489,000
Cash received from customers		526,700
Cash received from sale of long-term assets		400
Dividends paid to stockholders		0

Prepare a statement of retained earnings for the nine months ended October 1, 2016. (Enter your answers in thousands.)

Prepare a balance sheet for the nine months ended October 1, 2016. (Enter your answers in thousands.)

Prepare a statement of cash flows for the nine months ended October 1, 2016. (Cash outflows should be entered as negative amounts. Enter your answers in thousands.)

Answer 1

Statement of Retained earnings:

Statement of Retained earnings
For the nine months ended October 1, 2016
Retained Earnings Jan. 1, 2016	260,600
Add: net income (See calculations)	27930
Balance	288,530
(Less): Dividends	0
Retained Earnings Oct.31,2016	288,530

Balance Sheet:

Balance Sheet
As of October 1, 2016
Assets		Liabilities
Cash	675,130	Accounts Payable	519,700
Accounts Receivable	461,600	Notes Payable	54,000
Supplies	86,700	Total liabilities	573,700
Inventories	215,300	Stockholders' equity
Equipment	255,700	Common Stock	832,200
		Retained earnings	288,530
		Total stockholders' equity	1,120,730
Total Assets	1,694,430	Total liabilities and stockholders' equity	1,694,430

Cash flow Statement:

Statement of Cash flows
For the nine months ended October 1, 2016
Cash flows from operating activities:
Cash paid to suppliers and employees	-489,000
Cash received from customers	526,700
Net cash flows from operating activities (i)		37,700
Cash flows from investing activities:
Cash paid to purchase equipment	-67,100
Cash received from sale of long-term assets	400
Net cash flows from investing activities (ii)		-66,700
Cash flows from financing activities:
Cash received from issuing common stock	39,430
Dividends paid to stockholders	0
Net cash flows from financing activities (iii)		39,430
Cash Surplus(Deficit) (i+ii+iii)		10,430
Cash Balance January 1, 2016		664,700
Cash Balance October 31, 2016		675,130

Calculations:

Income Statement
Sales Revenue		507,130
Expenses:
Office Expenses	114,200
Income Tax Expense	18,600
Interest Expense	2,900
Advertising Expense	80,100
Operating Expenses	263,400
Total Expenses		479,200
Net income		27,930