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Company: Facebook, Inc. Data for the year ended December 31, 2023: Item Amount Total Assets $600,000,000 Total Liabilities $300,000,000 Shareholders' Equity $300,000,000 Revenue $200,000,000

Company: Facebook, Inc.
 Data for the year ended December 31, 2023:

Item

Amount

Total Assets

$600,000,000

Total Liabilities

$300,000,000

Shareholders' Equity

$300,000,000

Revenue

$200,000,000

Operating Expenses

$120,000,000

Requirements:

  1. Calculate Facebook's debt ratio.
  2. Determine Facebook's net profit margin.
  3. Analyze the impact of total assets on Facebook's financial leverage.
  4. Discuss how Facebook recognizes revenue from digital advertising.
  5. Evaluate Facebook's financial health using the interest coverage ratio.
  6. Explain how the Income Measurement Objective affects Facebook’s strategic financial decisions.

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