Analysis and Interpretation of ROE and RNOA with No Noncontrolling Interest \begin{tabular}{|c|r|r|} \hline \multicolumn{3}{|c|}{ NETFLIX INC. } \\ \multicolumn{2}{|c|}{ Consolidated Balance Sheets } \\ in millions & 2018 & \multicolumn{2}{|c|}{2017} \\ \hline Current assets & & \\ \hline Cash and cash equivalents & $3,794,483 & $2,822,795 \\ \hline Current content assets, net & 5,151,186 & 4,310,934 \\ \hline Other current assets & 748,466 & 536,245 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|l|}{ Total current assets } & 9,694,135 & 7,669,974 \\ \hline Noncurrent content assets, net & 14,960,954 & 10,371,055 \\ \hline Property and equipment, net & 418,281 & 319,404 \\ \hline Other noncurrent assets & 901,030 & 652,309 \\ \hline Total assets & 25,974,400 & $19,012,742 \\ \hline Current liabilities & & \\ \hline \hline Current content liabilities & $4,686,019 & $4,173,041 \\ \hline Accounts payable & 562,985 & 359,555 \\ \hline Accrued expenses & 477,417 & 315,094 \\ \hline Deferred revenue & 760,899 & 618,622 \\ \hline Total current liabilities & 6,487,320 & 5,466,312 \\ \hline Noncurrent content liabilities & 3,759,026 & 3,329,796 \\ \hline Long-term debt & 10,360,058 & 6,499,432 \\ \hline Other noncurrent liabilities & 129,231 & 135,246 \\ \hline Total liabilities & 20,735,635 & 15,430,786 \\ \hline Stockholders' equity & & \\ \hline Preferred stock, 0.001 par value & & 0 \\ \hline Common stock, $0.001 par value & 2,315,988 & 1,871,396 \\ \hline Accumulated other comprehensive loss & (19,582) & (20,557) \\ \hline Retained earnings & 2,942,359 & 1,731,117 \\ \hline Total shareholders' equity & 5,238,765 & 3,581,956 \\ \hline Total liabilities and shareholders' equity & $25,974,400 & $19,012,742 \\ \hline \end{tabular} (a) Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. Round to the nearest whole number. 2018 NOPAT =$ (b) Compute net operating assets (NOA) for 2018 and 2017. 2018NOA=$ x 2017NOA=$ (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Do not use NOPM NOAT to calculate RNOA. Do not round until your final answer. Round answer to two decimal places. 2018 RNOA = % 2018 NOPM = % 2018 NOAT = (d) . Compute net nonoperating obligations (NNO) for 2018 and 2017. 2018NNO=$ (e) Compute return on equity (ROE) for 2018 . Round answer to two decimal places. 2018ROE= (f) Infer the nonoperating return component of ROE for 2018. Use above answers to calculate. Round answer to two decimal places. 2018 nonoperating return = % Analysis and Interpretation of ROE and RNOA with No Noncontrolling Interest \begin{tabular}{|c|r|r|} \hline \multicolumn{3}{|c|}{ NETFLIX INC. } \\ \multicolumn{2}{|c|}{ Consolidated Balance Sheets } \\ in millions & 2018 & \multicolumn{2}{|c|}{2017} \\ \hline Current assets & & \\ \hline Cash and cash equivalents & $3,794,483 & $2,822,795 \\ \hline Current content assets, net & 5,151,186 & 4,310,934 \\ \hline Other current assets & 748,466 & 536,245 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|l|}{ Total current assets } & 9,694,135 & 7,669,974 \\ \hline Noncurrent content assets, net & 14,960,954 & 10,371,055 \\ \hline Property and equipment, net & 418,281 & 319,404 \\ \hline Other noncurrent assets & 901,030 & 652,309 \\ \hline Total assets & 25,974,400 & $19,012,742 \\ \hline Current liabilities & & \\ \hline \hline Current content liabilities & $4,686,019 & $4,173,041 \\ \hline Accounts payable & 562,985 & 359,555 \\ \hline Accrued expenses & 477,417 & 315,094 \\ \hline Deferred revenue & 760,899 & 618,622 \\ \hline Total current liabilities & 6,487,320 & 5,466,312 \\ \hline Noncurrent content liabilities & 3,759,026 & 3,329,796 \\ \hline Long-term debt & 10,360,058 & 6,499,432 \\ \hline Other noncurrent liabilities & 129,231 & 135,246 \\ \hline Total liabilities & 20,735,635 & 15,430,786 \\ \hline Stockholders' equity & & \\ \hline Preferred stock, 0.001 par value & & 0 \\ \hline Common stock, $0.001 par value & 2,315,988 & 1,871,396 \\ \hline Accumulated other comprehensive loss & (19,582) & (20,557) \\ \hline Retained earnings & 2,942,359 & 1,731,117 \\ \hline Total shareholders' equity & 5,238,765 & 3,581,956 \\ \hline Total liabilities and shareholders' equity & $25,974,400 & $19,012,742 \\ \hline \end{tabular} (a) Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. Round to the nearest whole number. 2018 NOPAT =$ (b) Compute net operating assets (NOA) for 2018 and 2017. 2018NOA=$ x 2017NOA=$ (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Do not use NOPM NOAT to calculate RNOA. Do not round until your final answer. Round answer to two decimal places. 2018 RNOA = % 2018 NOPM = % 2018 NOAT = (d) . Compute net nonoperating obligations (NNO) for 2018 and 2017. 2018NNO=$ (e) Compute return on equity (ROE) for 2018 . Round answer to two decimal places. 2018ROE= (f) Infer the nonoperating return component of ROE for 2018. Use above answers to calculate. Round answer to two decimal places. 2018 nonoperating return = %