3 P4-42. Compute the DuPont Disaggregation of ROE Refer to the balance sheets and income statement below for Facebook Inc. FACEBOOK INC. Consolidated Statement of Income For Year Ended December 31, $ millions 2018 $55,838 EHHI HIHIR HHIIHIM Revenue Costs and expenses Cost of revenue Research and development Marketing and sales General and administrative. Total costs and expenses. Income from operations Interest and other income (expense), net Income before provision for income taxes. Provision for income taxes.AHHH Net Income MIHIHIH 9,355 10,273 7.846 3,451 30.925 24,913 448 25,361 3,249 $22,112 114 INFO WIH HHHHHHHHHHHHH FACEBOOK INC. Consolidated Balance Sheet At December 31, S millions 2018 2017 Current assets Cash and cash equivalents. Marketable securities Accounts receivable, net Prepaid expenses and other current assets Total current assets. Property and equipment, net Intangible assets, net Goodwill Other assets Total assets $10,019 31.095 7.587 1.779 50,480 24.683 1.294 18,301 2,576 S971334 S 8,079 33,632 5,832 1,020 48,563 13,721 1.884 18.221 2,135 S84,524 S 820 541 5,509 147 Current liabilities Accounts payable Partners payable Accrued expenses and other current liabilities Deferred revenue and deposits Total current liabilities Other liabilities Total liabilities Stockholders' equity Common stock and additional paid in capital Accumulated other comprehensive loss Retained eamings Total stockholders equity Total liabilities and stockholders equity 380 390 2.892 98 3.760 6.417 10,177 7,017 6,190 13,207 42.906 (760) 41.981 40.584 (2270 33,990 24,347 $84.524 84.127 $971334 Required a. Compute retum on equity (ROE). Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. Calculate the profitability and productivity components of ROA. d. Confirm the full DuPont disaggregation: ROE-PMX ATX Full