Recent balance sheets are provided for Twitter, Inc., a global platform for real-time public self-expression and conversation. Show your answers in thousands of dollars.

Required:
1. Is Twitter a corporation, sole proprietorship, or partnership? Explain the basis of your answer.
2. Use the company’s balance sheet to determine the amounts in the accounting equation (A = L + SE) at the end of the most recent year.
3. Calculate the company’s current ratio on December 31, 2019, and on December 31, 2018 (round your answers to three decimal places). Interpret the ratios that you calculated. What other information would make your interpretation more useful?
4. Prepare the journal entry the company will make in 2020 assuming it pays its December 31, 2019, accounts payable balance in full.
5. Does the company appear to have been profitable over its years in business? On what account are you basing your answer? Assuming no dividends were paid, how much was net income (or net loss) in thousands of dollars in the most recent year? If it is impossible to determine without an income statement, state so.

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TWITTER, INC. CONSOLIDATED BALANCE SHEETS* (In thousands, unless otherwise specified) ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable Prepaid expenses and other current assets Total current assets Property and equipment, net Operating lease right-of-use assets Intangible assets Other noncurrent assets Total assets Dec. 31, 2019 $ 1,799,082 4,839,970 850,184 130,839 7,620,075 1,031,781 697,095 1,311,805 2,042,633 $12,703,389 Dec. 31, 2018 $ 1,894,444 4,314,957 788,700 112,935 7,111,036 885,078 1,272,294 894,164 $ 10,162,572