Problem Set 5: Twitter (X), Inc. is the leading global platform for real-time public self-expression and conversations. Refer to Twitters 10-K forms (which can be obtained from the SEC website or other financial mediums such as Yahoo Finance, etc.) and answer the following questions:

1. In a table, report Twitters gross profit, operating expenses (R&D, sales and marketing, G&A expenses separately), net operating income, net income, retained earnings (labeled as accumulated deficit), net cash flows from operating activities, and total cash flow for the fiscal years (2015-2020).

2. Referring to Twitters income statements, why didnt Twitter report any positive net income until 2018? (i.e., what are the main expenses that wiped out Twitters positive gross profit in previous years?) What main factor enabled Twitter to report its first-ever positive net income in 2018?

3. Referring to Twitters statement of cash flows, did Twitter generate net cash inflows or outflows from operations in recent years? Twitter uses the indirect method to prepare the statement of cash flows. What main accrual items (i.e., items listed between Net Income and operating cash flows lines) explain the strikingly opposite pictures portrayed by net income and operating cash flows provided in 2015-2017 (and again in 2020)?