r$-42.$ Compure ine Duront Disaggreganon of KUE

Refer to the balance sheets and income statement below for Facebook Inc.

FACEBOOK INC.

Consolidated Statement of Income

For Year Ended December $31,$ $ millions

Revenue,

$2018$

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.

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$=PMATFL.$