EXHIBIT 5 Fitbit, Inc., Consolidated Statements of Operations, 2014-First Quarter 2017 (in thousands) First Quarter 2017...

Question

EXHIBIT 5 Fitbit, Inc., Consolidated Statements of Operations, 2014-First Quarter 2017 (in thousands) First Quarter 2017 2016 2015 2014 Revenue $298,942 Cost of revenue 180,643 $2,169,461 1.323,557 845,884 $1,857,998 956,935 901,063 $745,433 387.776 357,657 118,299 Gross profit Operating expenses: Research and development 87,785 320,191 150,035 54,167 Sales and marketing 91,174 332,741 112,005 491,255 146,903 General and administrative 30,746 77,793 33,556 Change in contingent consideration Total operating expenses 209,678 199,728 Operating income 958,349 (112,465) 3,156 (91,379) 1,096 157,929 Interest income (expense), net (2,222) (2704) 552,865 348,198 (1.019) _(59,230) 287,949 112.272 $ 175,677 Other expense, net 533 _(15,934 Income before income taxes (109,295) 139,773 Income tax expense (89,750) _(29.671) $ (60,079) _(6,518) $ (102,777) 7.996 $ 131,777 Net income EXHIBIT 6 Fitbit, Inc., Condensed Consolidated Balance Sheets, 2015-2016 December 31, 2016 December 31, 2015 Assets Current assets Cash and cash equivalents $ 301,320 $ 535,846 Marketable securities 404,693 128,632 Accounts receivable, net 477,825 469,200 Inventories 178,146 Prepaid expenses & other current assets 43.530 Total current assets 230,387 66,346 1,480,571 76,553 51,036 1,355,414 Property and equipment, net 44,501 22,157 Goodwill Intangible assets, net 12,216 Deferred tax assets 83,020 27.521 174,097 10,448 $1,820,226 Other assets 1.758 Total assets $1,519,066 Liabilities, Redoomable Convertible Proforred Stock and Stockholders' Equity Current liabilities Accounts payable $ 313,773 $ 260,842 200.099 Accrued liabilities 390,561 Deferred revenue 49,904 44,448 Income taxes payable 7,694 Total current liabilities 761,932 2,868 508,257 29,358 537.615 Other liabilities 59,762 821,694 Total liabilities Stockholders' equity Common stock & paid-in capital 859,368 737,841 691 Accumulated other comprehensive income (978) Retained earnings 140.142 242.919 Total stockholders' equity 981,451 998,532 $1,820,226 Total liabilities and stockholders' .quity $1,519,066 5. What are the key success factors for... Use the key financial ratios presented in the Appendix of the book to help you diagnose Fitbit's financial performance. In addition to the financial ratios, you may also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows: CAGR % = [ending value = beginning value] - 1 x 100 where n = the number of year-to-year or period-to-period changes Analyze the company's financial performance. Do trends suggest that Fitbit's strategy is working? Select &#34;yes&#34; for those statements that are accurate and choose &#34;no&#34; for those that are not a. Fitbit's profitability declined between 2015 and 2016 and early indications from Q1 2017 indicate little progress. (Click to select) b. Gross margins for Fitbit dropped 48 percent in 2015 to 39 percent in 2016. (Click to select) c. Operating return in assets increased from 12 percent in 2015 to 20 percent in 2016. (Click to select) d. Fitbit's increasing leverage from 2015 to 2016, as expressed by the debt-to-asset and debt-to-equity ratios, appears to be a result of the combined effects of decreasing profitability. (Click to select) e. The company has a good deal of ground to cover to overcome their lackluster financial performance (Click to select) f. Fitbit's present working capital will allow the company to invest in future strategic endeavors. (Click to select)

 · Answer

a	Fitbit's profitability declined between 2015 and 2016 and early indications from Q1 2017 indicate little progress
	Yes, the statement is correct
	Particulars	Q12017	2016	2015
	Revenue	298942	2169461	1857998
	Net Income	-60079	-102777	175677
	Profitability	-20%	-5%	9%

b	Gross margin for Fitbit dropped 48% in 2015 to 39% in 2016
	Yes, the statement is correct
	Particulars	2016	2015	2014
	Revenue	2169461	1857998	745433
	Cost of revenue	1323557	956935	387776
	Gross profit	845904	901063	357657
	GP Margin	39%	48%	48%

c	Operating return in assets increased from 12% in 2015 to 20% in 2016
	No, the statement is not correct
	Particulars	2016	2015
	Operating Income	-112465	348198
	Total Assets	1820226	1519066
	Operating Return on Assets	-6%	23%

d	Fitbits increasing leverage from 2015 to 2016, as expressed by Debt to Asset and Debt to Equity Ratio appears to be a result of combined effect of decreasing profitability
	NO, The statement is not correct. It is mainly due to increase in Accrued liabilities and other Debt
	Particulars	2016	2015
	Debt	821694	537615
	Equity	998532	981451
	Assets	1820226	1519066

	D/ Eq	0.82	0.55
	Debt / Asset	0.45	0.35

e	The company has a good deal of ground to cover to overcome their lack luster performance
	Yes , the statement is correct as there is significant fall in Revenue growth
	Particulars	Q12017	2016	2015	2014
	Revenue	298942	2169461	1857998	745433
	CAGR %		16.76337	149.2508

f	Fitbit's present working capital will allow the company to invest in future strategic endevours
	NO, The working capital has gone down
			2016	2015
	Current Asset		1480571	1355414
	Current Liab		761932	508257
	Working Capital		718639	847157

.

EXHIBIT 5 Fitbit, Inc., Consolidated Statements of Operations, 2014-First Quarter 2017 (in thousands) First Quarter 2017...

Question:

Answers

Similar Solved Questions

If the adresse is 16 bit length how many addresses we have Select one: a. 64K...

The objective of this exercise is learning how to parse and analyze the logs on a...

Two spherical conductors A (radius 2.0 cm) and B (radius 3.0 cm) have initial charges of...

1. On Summary 1 year 3. While Company bought a building for Br 500,000. The building...

Be able to broadly describe the focus of each of the following perspectives: psychodynamic, humanistic, behavioral,...

1. (10 points) Find the inverse Laplace transform of the following: 85 - 4s +12 s?...

Problem 26.2 Constants I Periodic Table Part A The balls in the figure are charged to...

Please give detailed explanations/solutions, thank you! [5] 4. (a) Write a brief essay on standing waves...

Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 21,000...

Bond prices depend on the market rate of interest, stated rate of interest, and time. Read...

Please suggest a few topics to present in micro-soft power point

K. R., a 48-year-old female client, is admitted to the emergency department (ED) after having a...

In need of help writing a PICO question for this quantitative article provided Or is there...

Problem 19-1A Vin Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each...

What are some of the environmental issues facing the Jordan River? Describe the social issues that...

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter of calendar...