Refer to CP1-3.

Data from CP1-3:

Required:

1. Did Fitbit rely more on creditors or stockholders for its financing at October 1, 2016? What is your information source?

2. Was the stockholders’ equity at October 1, 2016, comprised more of contributions made by stockholders directly to the company or amounts earned and retained through profitable business operations? What is your information source?

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Accounts Payable $ 519,400 Income Tax Expense $ 18,300 Accounts Receivable 461,300 Interest Expense 2,600 Advertising Expense 79,800 Inventories 215,000 Cash (January 1, 2016) 664,400 Notes Payable 53,700 Cash (October 1, 2016) 672,100 Operating Expenses 263,100 Common Stock 830,700 Retained Earnings (January 1, 2016) 260,300 Equipment 255,400 Sales Revenue 503,800 Office Expenses 113,900 Supplies 86,400 Other cash flow information: Cash received from issuing common stock $ 39,400 Cash paid to purchase equipment Cash paid to suppliers and employees 66,800 488,700 Cash received from customers 523,700 Cash received from sale of long-term assets 100 Dividends paid to stockholders