Inferring Transactions from Financial Statements Fitbit Inc is a technology company that designs, manufactures, and sells wearable devices with software and services to help customers reach their health and fitness goals During fiscal 2018, Fitbit purchased inventory costing $1,636,884 ($ thousands) Assume Fitbit makes all purchases on credit and its accounts payable is only used for inventory purchases The following Taccounts reflect information contained in the companys fiscal 2017 and 2018 balance sheets ($ thousands) Inventories 2017 Bal 223,011 2018 Bal 224,768 Accounts Payable 382,916 2017 Bal 452,983 2018 Bal a Use the financial statement effects template to record Fitbits 2018 purchases Note For each account category, indicate the appropriate account name Enter N A for any account category that is not used for a given transaction Note Indicate a decrease in an account category by including a negative sign with the amount Balance Sheet Income Statement Cash Asset Noncash Assets Liabilities Contrib Capital Earned Capital Revenues Expenses Net Income Answer Answer Answer Answer Answer Answer Answer Answer AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A b What amount did it pay in cash to its suppliers during fiscal year 2018 $Answer c Use the financial statement effects template to record cost of goods sold for its fiscal year 2018 Note For each account category, indicate the appropriate account name Enter N A for any account category that is not used for a given transaction Note Indicate a decrease in an account category by including a negative sign with the amount Balance Sheet Income Statement Cash Asset Noncash Assets Liabilities Contrib Capital Earned Capital Revenues Expenses Net Income Answer Answer Answer Answer Answer Answer Answer Answer AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN A

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Inferring Transactions from Financial Statements Fitbit Inc. is a technology company that designs, manufactures, and sells wearable devices with software and services to help customers

Inferring Transactions from Financial Statements Fitbit Inc. is a technology company that designs, manufactures, and sells wearable devices with software and services to help customers reach their health and fitness goals. During fiscal 2018, Fitbit purchased inventory costing $1,636,884 ($ thousands). Assume Fitbit makes all purchases on credit and its accounts payable is only used for inventory purchases. The following Taccounts reflect information contained in the companys fiscal 2017 and 2018 balance sheets ($ thousands).

Inventories
2017 Bal.	223,011
2018 Bal.	224,768

Accounts Payable
		382,916	2017 Bal.
		452,983	2018 Bal.

a. Use the financial statement effects template to record Fitbits 2018 purchases. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.

Balance Sheet									Income Statement
Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital	Revenues	Expenses	=	Net Income
Answer		Answer	=	Answer		Answer		Answer	Answer	Answer	=	Answer
AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A		AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A		AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A		AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A		AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A

b. What amount did it pay in cash to its suppliers during fiscal year 2018? $Answer

c. Use the financial statement effects template to record cost of goods sold for its fiscal year 2018. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.

Balance Sheet									Income Statement
Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital	Revenues	Expenses	=	Net Income
Answer		Answer	=	Answer		Answer		Answer	Answer	Answer	=	Answer
AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A		AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A		AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A		AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A		AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseCashCommon StockCost of Goods SoldDepreciation ExpenseDividendsEquipmentInsurance ExpenseInventoriesNotes PayablePrepaid InsuranceRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A