(LO 1, 2), AN Caden had to admit it; she needed help. Working, cleaning, chauffeuring kids—it was too much. Thankfully, her friends suggested Care.com, where she connected with local people who provided the needed support. Caden was curious about the company, so she found its annual report. Here are a few excerpts from the company’s recently published financial statements. Care.com, Inc. Statement of Operations (in thousands) Fiscal Year Ended December 29, 2021 December 30, 2020 December 31, 2019 Revenue $192,260 $174,090 $161,754 Cost of revenue 42,706 35,773 31,830 Operating expenses: Selling and marketing 60,488 66,906 72,266 Research and development 34,641 25,423 20,402 General and administrative 44,360 35,214 31,939 Depreciation and amortization 1,669 1,684 2,972 Restructuring charges 613 3,136 714 Total operating expenses 141,771 132,363 128,293 Operating income $ 7,783 $ 5,954 $ 1,631 Care.com, Inc. Consolidated Balance Sheets (in thousands) December 29, 2021 December 30, 2020 Assets Current assets: Cash and cash equivalents $ 92,432 $ 86,728 Short-term investments 35,099 15,000 Accounts receivable (net of allowance of $100 and $102, respectively) 4,663 5,171 Unbilled accounts receivable 6,394 5,454 Prepaid expenses and other current assets 7,223 4,883 Total current assets 145,811 117,236 Property and equipment, net 3,423 3,651 Intangible assets, net 4,061 1,142 Goodwill 68,176 60,281 Other noncurrent assets 2,859 2,066 Deferred tax assets 43,737 — Total assets $268,067 $184,376 Required The company lists “Cost of revenue” as its first “cost” on the income statement (statement of operations). Is this cost also an expense? If not, why not? If so, why does the account name not include the term “expense”? Also on the income statement, the company lists several items beneath the category “Operating expenses.” What’s another name for operating expenses? Are all of