Income Statement Jun. 30, 2015 Jun. 30, 2014 $226,909 $762,596 380,415 382,181 119,229 107,680 20,897 48,168 16,060 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 Interest expense, net Other expense, net Income before income taxes Income tax expense Net income 52,918 138,557 27,629 -7,704 211,400 170,781 -1240 83,885 23,795 -846 -861 -4,906 -58,385 111,550 45,442 66,108 18,028 12,225 5,803 Balance Sheet Jun. 30, 2015 Jun. 30, 2014 Current Assets Cash and cash equivalents Accounts receivable, net Inventories 311,276 252,023 186,870 49,625 145,626 231,859 115,072 Deferred tax assets 33,555 Total Current Assets 799,794 526,112 26,435 Property and equipment, net Goodwill 30,945 22,157 Intangible assets, net Other assets 13,263 12,308 9,890 878,467 562,437 Total Assets Current Liabilities Accounts payable Deferred revenue Current Portion of Debt 143,594 195,666 21,346 9,009 0 19,518 164,940 224,193 0 106,071 164,940 330,264 Total Current Liabilities Long Term Debt Total Liabilities Equity Aditional Paid-in Capital Retained Earnings Total Shareholder Equity 490,290 223,237 713,527 7,979 224,194 232,173 Number of Shares 343,928 343,928 34.6 Price of the Stock 30.7 1. Has the international expansion favored FitBit?What has been the effects on costs and net revenue? 2. Is FitBit a healthy company, asses its liquidity, leverage and how it has been managing its assets through financial ratios (Calculate 2 at least for every type). 3. Because FitBit is a new company, the have little control over its suppliers and their policies. What would happen to the company's liquidity, if their suppliers asked to be paid in 90 days? What would be an estimated impact on Cash Balance? 4. 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)