Refer to CP1-3.
CP1-3.
Life Time Fitness, Inc. , reported the following information for the nine-month period ended
September 30, 2010. Items are listed alphabetically, and are in thousands of dollars.

Other cash flow information:
Cash received from issuing common stock.................... $ 3,660
Cash paid to purchase equipment.............................. 101,088
Cash paid to suppliers and employees......................... 541,597
Repayments of borrowings....................................... 38,067
Cash received from customers...................................687,744
Cash received from borrowings.................................. 13,939
Cash received from sale of long-term assets..................... 2,629
Dividends paid to stockholders......................................... 0
Required:
1. Did Life Time Fitness rely more on creditors or stockholders for its financing at September 30, 2010? What is your information source?
2. Was the stockholders' equity at September 30, 2010, comprised primarily of contributions made by stockholders directly to the company, amounts earned and retained through profitable business operations, or approximately equal amounts of both? What is your information source?

Transcribed Image Text:

36,389 Notes Payable Accounts Payable Accounts Receivable Advertising Expense Cash (January 1, 2010) Cash (September 30, 2010) Contributed Capital General and Administrative Expense Income Tax Expense Interest Expense 631,746 424,940 101,054 190,004 1,546,749 31,455 343,789 689,171 15,766 5,453 Operating Expenses 18,940 Other Assets 6,282 Other Liabilities 3,502 Property and Equipment 406,043 Rent Payable 32,606 42,156 Service Revenue Retained Earnings (January 1, 2010) 107,431 Supplies