Because FitBit is a new company, the have little control over its suppliers and their policies. What would happen to the companys liquidity, if their suppliers asked to be paid in 90 days? What would be an estimated impact on Cash Balance?

How would you increase FitBit revenue? How would those actions reflect on financial statements? (You can make as many assumptions as needed. They need to be backed up with numbers)

Income Statement Jun. 30, 2015 Jun. 30, 2014 $762,596 380,415 382,181 $226,909 119,229 107,680 Revenue/Sales/Sales on Credit Cost of revenue/Cost of Goods Sold Gross profit Operating expenses: Research and development Sales and marketing General and administrative Change in contingent consideration Total operating expenses Operating income 20,897 48,168 16,060 52,918 138,557 27,629 -7,704 211,400 170,781 -1240 83,885 23,795 Interest expense, net -846 -861 -58,385 Other expense, net Income before income taxes 111,550 45,442 -4,906 18,028 12,225 5,803 Income tax expense Net income 66,108 Balance Sheet Jun. 30, 2015 Jun. 30, 2014 Current Assets Cash and cash equivalents Accounts receivable, net Inventories 311,276 252,023 186,870 49,625 799,794 145,626 231,859 115,072 33,555 526,112 26,435 Deferred tax assets Total Current Assets Property and equipment, net Goodwill Intangible assets, net 30,945 22,157 13,263 12,308 878,467 Other assets 9,890 562,437 Total Assets Current Liabilities Accounts payable 143,594 21,346 Deferred revenue Current Portion of Debt 0 195,666 9,009 19,518 224,193 106,071 Total Current Liabilities 164,940 0 Long Term Debt Total Liabilities 164,940 330,264 490,290 7,979 Equity Aditional Paid-in Capital Retained Earnings Total Shareholder Equity 224,194 223,237 713,527 232,173 Number of Shares 343,928 343,928 Price of the Stock 34.6 30.7

Question

Because FitBit is a new company, the have little control over its suppliers and their policies. What would happen to the companys liquidity, if their suppliers asked to be paid in 90 days? What would be an estimated impact on Cash Balance?
How would you increase FitBit revenue? How would those actions reflect on financial statements? (You can make as many assumptions as needed. They need to be backed up with numbers)

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Income Statement Jun. 30, 2015 Jun. 30, 2014 $762,596 380,415 382,181 $226,909 119,229 107,680 Revenue/Sales/Sales on Credit Cost of revenue/Cost of Goods Sold Gross profit Operating expenses: Research and development Sales and marketing General and administrative Change in contingent consideration Total operating expenses Operating income 20,897 48,168 16,060 52,918 138,557 27,629 -7,704 211,400 170,781 -1240 83,885 23,795 Interest expense, net -846 -861 -58,385 Other expense, net Income before income taxes 111,550 45,442 -4,906 18,028 12,225 5,803 Income tax expense Net income 66,108 Balance Sheet Jun. 30, 2015 Jun. 30, 2014 Current Assets Cash and cash equivalents Accounts receivable, net Inventories 311,276 252,023 186,870 49,625 799,794 145,626 231,859 115,072 33,555 526,112 26,435 Deferred tax assets Total Current Assets Property and equipment, net Goodwill Intangible assets, net 30,945 22,157 13,263 12,308 878,467 Other assets 9,890 562,437 Total Assets Current Liabilities Accounts payable 143,594 21,346 Deferred revenue Current Portion of Debt 0 195,666 9,009 19,518 224,193 106,071 Total Current Liabilities 164,940 0 Long Term Debt Total Liabilities 164,940 330,264 490,290 7,979 Equity Aditional Paid-in Capital Retained Earnings Total Shareholder Equity 224,194 223,237 713,527 232,173 Number of Shares 343,928 343,928 Price of the Stock 34.6 30.7