Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Click to watch the Concept Clip Growing Pains video and then answer the questions below. 1. What was the first year that Twitter showed
Click to watch the Concept Clip Growing Pains video and then answer the questions below. 1. What was the first year that Twitter showed a positive net change for the year? a. Year 1 b. Year 2 C. Year 3 d. None of these 2. What must Twitter do to keep expanding? a. Provide more ads for stockholders. b. Increase add revenue. c. Continue to make significant investments. d. Improve cash flow. arowing Pains. Twitter Inc. is global secial media platfore used fer real-tine selfexpression and conversation within the linit of 14 character tets and Tdtter is a fast. growing conpany. A ary of the company's cash tlow from operating, investing, and financing activities shows huge growth in the conpany's first three years, In year 1, cash previded to fund operating activities sas sinu $27,935,000. That same year, cash provided for investing activities was $49,443,000. Cash used is financing activities was in the red at $37,124,000. Overall, the nat anount of cash ed for these activities as minus 11s,616,000. by the second year, things vere looking up. Cash provided in operatine sctivities was 1,19.000. Hover, investing activities a ins 1,,., Cash pravide ter financing activities was $1,942,176,000. Net change for the year was positive, atan inpressive 1437,ses,00e, By the third year, the companys cash position inrovet dranatically. Cash pravited Frin egerating activities was 1,796,00. That sane year, tash provided for investing ativities inus S1,e07,,00. Cash ved ie tirancing ativities meunted to $1,01,22, et tharge fur th year shoed an Intrease of $676,244,00e. You can see the significant Inprovenent in Teltter's cash flnn from peratione from year 1 to year 1. This inticates that Taitter is uccedlng aa new copany and is able to provide cash from perations after only years of operating as uhlic conpeny. They have spent large unts on investing aetivities and t contine te de e in rter te spend and renale duninent i their rield. Because the cesh fious froe operations are not anough te fund its groth, Twitter must abtain cash froe financing ativitie. In years 2 and 3, se slgeicnt sures h fro stackhalders, which vere used to espend and provide future flexibility rfor the conpany
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer to Question 1 The correct answer is Option b Year 2 Reason In Year 2 the compan...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started