Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Explain the major components of the balance sheet. Identify and explain any asset or liability line item that comprises over 10% of the total balance
Explain the major components of the balance sheet. Identify and explain any asset or liability line item that comprises over 10% of the total balance of its perspective total. Your explanation should include the nature and composition of the line item and how it relates to the business (e.g. is it unique to this industry or company).
Consolidated Balance Sheets (Statement) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 4,345 | $ 257 |
Marketable securities | 514 | 508 |
Funds held at payment processors | 146 | 50 |
Accounts receivable, net | 291 | 58 |
Prepaid expenses and other current assets | 221 | 125 |
Total current assets | 5,517 | 998 |
Restricted cash | 0 | 30 |
Operating lease right-of-use assets | 203 | 166 |
Property and equipment, net | 210 | 101 |
Intangible assets, net | 74 | 103 |
Goodwill | 316 | 306 |
Other assets | 33 | 28 |
Total assets | 6,353 | 1,732 |
Current liabilities: | ||
Accounts payable | 80 | 20 |
Operating lease liabilities | 15 | 17 |
Convertible notes | 364 | 0 |
Accrued expenses and other current liabilities | 943 | 345 |
Total current liabilities | 1,402 | 382 |
Operating lease liabilities | 238 | 167 |
Other liabilities | 13 | 1 |
Total liabilities | 1,653 | 550 |
Commitments and contingencies (Note 10) | ||
Redeemable convertible preferred stock, $0.00001 par value, 235,860 and zero shares authorized, 230,667 and zero shares issued and outstanding as of December 31, 2019 and 2020, respectively; liquidation preference of $2,197 and zero as of December 31, 2019 and 2020, respectively | 0 | 2,264 |
Stockholders’ (deficit) equity: | ||
Common stock, par value, Class A, Class B and Class C shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 6,313 | 70 |
Accumulated deficit | (1,613) | (1,152) |
Total stockholders’ (deficit) equity | 4,700 | (1,082) |
Total liabilities, redeemable convertible preferred stock, and stockholders’ (deficit) equity | $ 6,353 | $ 1,732 |
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||
Redeemable convertible preferred stock, par value ($ per share) | $ 0.00001 | $ 0.00001 |
Rebeemable convertible preferred, authorized (shares) | 0 | 235,860,000 |
Redeemable convertible preferred, issued (shares) | 0 | 230,667,000 |
Redeemable convertible preferred, outstanding (shares) | 0 | 230,667,000 |
Redeemable convertible preferred liquidation preference | $ 0 | $ 2,197,000,000 |
Common stock, par value ($ per share) | $ 0.00001 | $ 0.00001 |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, authorized (shares) | 6,000,000,000 | 360,000,000 |
Common stock, issued (shares) | 287,190,000 | 43,937,000 |
Common stock, outstanding (shares) | 287,190,000 | 43,937,000 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, authorized (shares) | 200,000,000 | 0 |
Common stock, issued (shares) | 31,313,000 | 0 |
Common stock, outstanding (shares) | 31,313,000 | 0 |
Class C Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, authorized (shares) | 2,000,000,000 | 0 |
Common stock, issued (shares) | 0 | 0 |
Common stock, outstanding (shares) | 0 | 0 |
Step by Step Solution
★★★★★
3.46 Rating (146 Votes )
There are 3 Steps involved in it
Step: 1
Balance sheet is one of the financial statement of a company which includes items such as assets liabilities and owners equity where the total assets should be equal to liabilities plus owners equity ...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