Compute ROE and Nonoperating Return with Negative NNO and No Noncontrolling Interest Refer to the balance sheets and income statement below for Facebook Inc.

FACEBOOK INC.

Consolidated Statement of Income

For Year Ended December 31, 2018 ($ millions)

Revenue $57,513

Costs and expenses:

Cost of revenue $9,355

Research and development $10,273

Marketing and sales $7,846

General and administrative $3,451

Total costs and expenses $30,925

Income from operations $26,588

Interest and other income (expense), net $448

Income before provision for income taxes $27,036

Provision for income taxes $3,249

Net income $23,787

FACEBOOK INC.Consolidated Balance Sheet

At December 31, 2018 & 2017 ($ millions)

Current assets:

Cash and cash equivalents $$10,019 $8,079

Marketable securities $31,095 $33,632

Accounts receivable, net $7,815 $5,832

Prepaid expenses and other current assets $1,779 $1,020

Total current assets $50,708 $48,563

Property and equipment, net $24,683 $13,721

Intangible assets, net $1,294 $1,884

Goodwill $18,301 $18,221

Other assets $2,576 $2,135

Total assets $97,562 $84,524

Current liabilities:

Accounts payable $820 $380

Partners payable $541 $390

Accrued expenses and other current liabilities $5,509 $2,892

Deferred revenue and deposits $147 $98

Total current liabilities $7,017 $3,760

Other liabilities $6,190 $6,417

Total liabilities $13,207 $10,177

Stockholders' equity:

Common stock and additional paid-in capital $42,906 $40,584

Accumulated other comprehensive loss $(760) $(227)

Retained earnings $42,209 $33,990

Total stockholders' equity $84,355 $74,347

Total liabilities and stockholders' equity $97,562 $84,524

Use these financial statements to answer the requirements.

Required For the 2018 fiscal year, Facebook had a return on net operating assets (RNOA) of 61.78%. a. Compute ROE. Note: Round percentage to two decimal places (for example, enter 6.66% for 6.6555%). Answer% b. Compute net nonoperating obligations (NNO) for 2018 and 2017, net nonoperating expense (NNE), and the NNE as a percentage of NNO (NNEP), assuming a 22% statutory tax rate. Note: Round NNEP percentage to two decimal places (for example, enter 6.66% for 6.6555%). 2018 NNO: $Answer million 2017 NNO: $Answer million 2018 NNE: $Answer million 2018 NNEP: Answer%