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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

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 $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, $ millions 2018 2017
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

% 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: Answer

2018: Spread: Answer

% d. Show that ROE = RNOA + (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
Answer + ( Answer x Answer ) = Answer

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%).

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