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Facebook, Inc. Requirement 1: Calculate the Net Income for Facebook, Inc. based on the following data: Revenue: $20,000,000 Operating Expenses: $8,000,000 Interest Expense: $1,000,000 Requirement

  1. Facebook, Inc.
    • Requirement 1: Calculate the Net Income for Facebook, Inc. based on the following data:
      • Revenue: $20,000,000
      • Operating Expenses: $8,000,000
      • Interest Expense: $1,000,000
  2. Requirement 2: Prepare a statement of cash flows for Facebook, Inc. using the indirect method.
  3. Requirement 3: Calculate the Quick Ratio for Facebook, Inc. using the following information:
    • Cash and Cash Equivalents: $5,000,000
    • Accounts Receivable: $3,000,000
    • Current Liabilities: $4,000,000
  • Requirement 4: Analyze Facebook, Inc.'s capital structure and its impact on financial stability.
  • Requirement 5: Discuss Facebook, Inc.'s revenue recognition policies for its advertising and subscription services.

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