P3-45. Compute the DuPont Disaggregation of ROE 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 $55,838 9,355 10,273 7,846 3,451 Revenue.... Costs and expenses Cost of revenue Research and development Marketing and sales .. General and administrative. Total costs and expenses. Income from operations .... Interest and other income (expense), net. ... Income before provision for income taxes .. Provision for income taxes.. Net income.. 30,925 24,913 448 25,361 3,249 $22,112 FACEBOOK INC. Consolidated Balance Sheet At December 31, $ millions 2018 2017 $10,019 31,095 7,587 1,779 $ 8,079 33,632 5,832 1,020 Current assets Cash and cash equivalents. Marketable securities ... Accounts receivable, net.. Prepaid expenses and other current assets. Total current assets ... Property and equipment, net Intangible assets, net. Goodwill .... Other assets. Total assets 50,480 24,683 1,294 18,301 2,576 48,563 13,721 1,884 18,221 2,135 $97,334 $84,524 $ 820 541 5,509 147 $ 380 390 2,892 98 7,017 6,190 3,760 6,417 Current liabilities Accounts payable Partners payable.... 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 .... 13,207 10,177 42,906 (760) 41,981 40,584 (227) 33,990 84,127 74,347 $84,524 $97,334 Required a. Compute return on equity (ROE). b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. c. Calculate the profitability and productivity components of ROA. d. Confirm the full DuPont disaggregation: ROE = PM AT FL