1. Based on the Statement of Operations and Comprehensive Loss (aka: Income Statement). what was the total net loss for the year ending 6/30/22? Hint: the line item to look at is below Income Tax Expense (benefit). 2. Peloton does not have a Retained Earnings account on its Balance Sheet because it has not had positive earnings and thus nothing to retain. Instead it uses an account called Accumulated Deficit. What is the Accumulated Deficit for Peloton on 6/30/2021 and 6/30/2022 on the Balance Sheet? 3. We know that the financial statements are all linked together. What is the dollar amount difference in the Accumulated Deficits you listed in #2? Does that match your answer from #1? Why or why not? 4. The revenues and expenses for a business are "closed" into Retained Earnings (or Accumulated Deficit) at the end of the year. See Chapter 13, page 665 in your eBook for more information on closing accounts. Why must we "close out" revenues and expenses at the end of the year? 5. If Peloton has been unprofitable for several years, where are they receiving their cash to stay in business? Hint: look for which activity and which line item on the Statement of Cash Flows provides the most cash inflow. 6. Do a search on Peloton for reasons their earnings dropped. Share some of the information you read about why Peloton has been suffering lately.

1. Based on the Statement of Operations and Comprehensive Loss (aka: Income Statement). what was the total net loss for the year ending 6/30/22? Hint: the line item to look at is below income Tax Expense (benefit). 2. Peloton does not have a Retained Earnings account on its Balance Sheet because it has not had positive earnings and thus nothing to retain. Instead it uses an account called Accumulated Deficit. What is the Accumulated Deficit for Peloton on 6/30/2021 and 6/30/2022 on the Balance Sheet? 3. We know that the financial statements are all linked together. What is the dollar amount difference in the Accumulated Deficits you listed in \#2? Does that match your answer from \#1? Why or why not? 4. The revenues and expenses for a business are "closed" into Retained Earnings (or Accumulated Deficit) at the end of the year. See Chapter 13, page 665 in your eBook for more information on closing accounts. Why must we "close out" revenues and expenses at the end of the year? 5. If Peloton has been unprofitable for several years, where are they receiving their cash to stay in business? Hint: look for which activity and which line item on the Statement of Cash Flows provides the most cash inflow. 6. Do a search on Peloton for reasons their earnings dropped. Share some of the information you read about why Peloton has been suffering lately. PELOTON INTERACTIVE, INC. CONSRI INATEN AAI ANRE RLEETE CONSOLIDATED STATEMENTS OF OPERATIONS ANO CONPAEHENSIVE LOSS (in milliens, extept share and per share ambunts) PELOTON INTERACTIVE, INC: CONSOLIDATED STATEMENTS OF CASH FLOWS (in militions) Do you remember when Peloton bikes were the "craze" across America during the pandemic and people were waiting months to receive their ordered bike? The Annual Report (10K) for Peloton Interactive, Inc. says the following: "Peloton is the largest interactive fitness platform in the world with a loyal community of over 6.9 million Members as of June 30, 2022. We pioneered connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes to our Members anytime, anywhere. We make fitness entertaining approachable. effective, and convenient. while fostering social connections that encourage our Members to be the best versions of themselves:" The Consolidated Balance Sheet, Consolidated Statement of Operations (Income Statement), and Consolidated Statement of Cash Flows are attached below for the fiscal year ending June 30, 2022