Analysis and Interpretation of ROE and RNOA with No Noncontrolling Interest The 2018 balance sheets and income statement for Netflix Inc. follow. Refer to these financial statements to answer the requirements. NETFLIX INC. Consolidated Statements of Earnings For Year Ended December 31, $ thousands Revenues Cost of revenues Marketing Technology and development General and administrative Operating income Other income (expense) Interest expense Interest and other income Income before income taxes Provision for income taxes Net income 2018 $15,794,341 9,967,538 2,369,469 1,221,814 630,294 1,605,226 (420,493) 41,725 1,226,458 15,216 $ 1,211,242 Current assets NETFLIX INC. Consolidated Balance Sheets in millions Cash and cash equivalents Current content assets, net Other current assets Total current assets 2018 2017 $3,794,483 $2,822,795 5,151,186 4,310,934 748,466 536,245 9,694,135 7,669,974 Noncurrent content assets, net 14,960,954 10,371,055 Property and equipment, net 418,281 319,404 Other noncurrent assets 901,030 652,309 Total assets 25,974,400 $19,012,742 Current liabilities Current content liabilities Accounts payable Accrued expenses Deferred revenue Total current liabilities Noncurrent content liabilities Long-term debt Other noncurrent liabilities Total liabilities $4,686,019 $4,173,041 562,985 359,555 477,417 315,094 760,899 618,622 6,487,320 5,466,312 3,759,026 3,329,796 10,360,058 6,499,432 129,231 135,246 20,735,635 15,430,786 Stockholders' equity Preferred stock, $0.001 par value 0 0 Common stock, $0.001 par value 2,315,988 1,871,396 Accumulated other comprehensive loss (19,582) (20,557) Retained earnings 2,942,359 1,731,117 Total shareholders' equity 5,238,765 3,581,956 Total liabilities and shareholders' equity $25,974,400 $19,012,742 (a) Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. Round to the nearest whole number. 2018 NOPAT -$0 (b) Compute net operating assets (NOA) for 2018 and 2017. 2018 NOA $ 11,804,340 2017 NOA $7,258,593 (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Do not use NOPM X NOAT to calculate RNOA. Do not round until your final answer. Round answer to two decimal places. 2018 RNOA 0 2018 NOPM 0 2018 NOAT=0 x 56 (d). Compute net nonoperating obligations (NNO) for 2018 and 2017. 2018 NNO - $ 6,565,575 2017 NNO $3,676,637 (e) Compute return on equity (ROE) for 2018. Round answer to two decimal places. 2018 ROE 0 x % (f) Infer the nonoperating return component of ROE for 2018. Use above answers to calculate. Round answer to two decimal places. 2018 nonoperating return 0 * %