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, $ millions 2018 Revenue $55,838 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 24,913 Interest and other income (expense), net 448 Income before provision for income taxes 25,361 Provision for income taxes 3,249 Net income $22,112 FACEBOOK INC. Consolidated Balance Sheet At December 31, $ millions 2018 2017 Current assets Cash and cash equivalents Marketable securities $10,019 $8,079 31,095 33,632 Accounts receivable, net 7,587 5,832 Prepaid expenses and other current assets 1,779 1,020 Total current assets 50,480 48,563 Property and equipment, net 24,683 13,721 Intangible assets, net 1,294 1,884 Goodwill 18,301 18,221 Other assets Total assets Current liabilities $2,576 $2,135 $97,334 $84,524 Accounts payable $820 $380 Partners payable 541 390 Accrued expenses and other current liabilities 5,509 2,892 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 earnings Total stockholders' equity Total liabilities and stockholders' equity 5,509 2,892 147 98 7,017 3,760 6,190 6,417 13,207 10,177 42,906 40,584 (760) (227) 41,981 33,990 84,127 74,347 $97,334 $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 57.54%. a. Compute ROE. Note: Round percentage to two decimal places (for example, enter 6.66% for 6.6555%). 26.28 * % 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: $ 25,240 x million 2017 NNO: $ 0 xmillion 2018 NNE: $ 0 x million 2018 NNEP: 0 * % c. Compute FLEV and Spread. Note: For FLEV, round amount to four decimal places (for example, enter 6.7756 for 6.775555). Note: Round Spread percentage to two decimal places (for example, enter 6.66% for 6.6555%). 2018 FLEV: 0 2018: Spread: 0 * % Note: For FLEV, round amount to four decimal places (for example, enter 6.7756 for 6.775555). Note: Round Spread percentage to two decimal places (for example, enter 6.66% for 6.6555%). 2018 FLEV: 0 2018: Spread: 0 * % d. Show that ROERNOA+ (FLEV Spread). Note: For FLEV, round amount to four decimal places (for example, enter 6.7756 for 6.775555). Note: For RNOA, Spread, and ROE, round percentages to two decimal places (for example, enter 6.66% for 6.6555%). RNOA +(FLEV x Spread ROE 0% +( 0x x 0% *)= 0% x e. What is the nonoperating return for the year? Note: Round Spread percentage to two decimal places (for example, enter 6.66% for 6.6555%). 0 Check * %