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Graphical representations of the Facebook 2022 income statement and average balance sheet data (2021-2022) follow (in millions). Compute the following amounts for year 2022. Enter

image text in transcribed Graphical representations of the Facebook 2022 income statement and average balance sheet data (2021-2022) follow (in millions). Compute the following amounts for year 2022. Enter your responses below. Do not round intermediate calculations. a. Compute return on equity (ROE). [ Select ] ["20.74%", "107.45%", "13.19%", "18.52%", "14.44%"] b. Calculate ROE using the ROA and Financial Leverage (FL) components. (Financial leverage equals average total assets divided by average stockholders equity.)

ROE = ROA FL
[ Select ] ["27.92%", "14.44%", "18.52%", "5.32%", "22.96%"] = [ Select ] ["78.35%", "59.54%", "19.90%", "13.19%", "10.29%"] [ Select ] ["0.71", "0.40", "1.09", "1.07", "1.40"]

c. Calculate ROA using the Profit Margin (PM) and Asset Turnover (AT) components.

ROA = PM AT
[ Select ] ["13.19%", "16.36%", "12.28%", "27.92%", "18.52%"] = [ Select ] ["15.52%", "13.19%", "19.90%", "13.53%", "18.52%"] [ Select ] ["1.51", "0.52", "0.93", "0.66", "0.88"]

d. Confirm the full DuPont formula: ROE = PM AT FL.

ROE = PM AT FL
[ Select ] ["27.92%", "18.52%", "14.44%", "22.96%", "5.32%"] = [ Select ] ["13.19%", "18.52%", "13.53%", "19.90%", "15.52%"] [ Select ] ["1.51", "0.66", "0.88", "0.93", "0.52"] [ Select ] ["1.07", "0.40", "0.71", "1.40", "1.09"]

Graphical representations of the Facebook 2022 income statement and average balance sheet data (2021-2022) follow (in millions Compute the following amounts for year 2022. Enter your responses below. Do not round intermediate calculations

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