Recent balance sheets are provided for Twitter, Inc., a global platform for real-time public self-expression and conversation.

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, 2014, and on December 31, 2013. 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 2015 when it pays its 2014 accounts payable due at year-end.
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 the most recent year? If it is impossible to determine without an income statement, state so.

TWITTER, INC Consolidated Balance Sheets In thousands, unless otherwise specified) December 31, 2014 December 31, 2013 ASSETS Current assets Cash and cash equivalents Short-term investments Accounts receivable Prepaid expenses and other current assets $1,510,724 2,111,154 418.454 215,521 S 841,010 1,393,044 247.328 93,297 4,255,853 557,019 727,581 42.629 $5,583,082 2574,679 332,662 441,104 17.795 $3,366,240 Total current assets Property and equipment, net Intangible assets Other noncurrent assets Total assets TWITTER, INC Consolidated Balance Sheets In thousands, unless otherwise specified) Continued) December 31, 2014 December 31, 2013 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable Accrued and other current liabilities Capital leases, short-term $ 27,994 110,310 87,126 225,430 S 53,241 228,233 112,320 393,794 1.376,020 118,950 67.915 1,956,679 Total current liabilities Notes payable Capital leases, long-term Other long-term liabilities Total liabilities 110,520 80,284 416,234 Stockholders' equity Common stock ($0.000005 par value Additional paid-in capital 5,208,870 3,944,952 (1.582.470)(994,949) Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity 3.626.403 $5,583,082 2,950,006 S3,366,240