This is one entire question.
Analysis and Interpretation of Ratios When RNOA Exceeds 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 Revenue $55,280 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 24,355 Interest and other income (expense), net 448 Income before provision for income taxes 24,803 Provision for income taxes 3,249 Net income $21,554 FACEBOOK INC. Consolidated Balance Sheet At December 31, $ millions 2018 2017 1796 .... SEP 27 esc 20 F1 F2 F3 F4 F5lbscriptions Joseph Use these financial statements to answer the requirements. Required a. Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. Hint: Carefully consider whether nonoperating expense is positive or negative. Note: Round answer to the nearest million. 0 x ($ millions) b. Compute net operating assets (NOA) for 2018 and 2017. NOA for 2017: 0 NOA for 2018: 0 c. Compute RNOA and disaggregate it into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Note: For NOPM and RNOA, round percentages to two decimal places (for example, enter o.66% for 6.6555%). Note: For NOAT, round amount to four decimal places (for example, enter 6.7756 for 6.775555). NOPM X NOAT = RNOA 0% X x O X = 0% X d. Compute return on equity (ROE) for 2018. Note: Round percentage to two decimal places (for example, enter 6.66% for 6.6555%). 0 * % check Incorrect SEP 27 - MacBook Air 20 888 DD DII 44 F9 F10 F11 F12 esc F1 F4 F5 F6 F7 @ # & 2 3 5 6 7 8 9 deConsolidated Balance Sheet At December 31, $ millions Cash and cash equwalents ' Marketable securities 1 1 Accounts receivable, net I 1 1I Prepaid expenses and other current assets . 1 50,404 48, 563' 1 Total current assets 1 Property and equipment, net intangible assets, net , EGoodwill_ I 10ther assets 1 Total assets \\ 2 '____4,_.,,.,,,,,, *' Current liabilities I if-- 1 , Accountspayable 1 Partners payable Deferred revenue and deposits Total current liabilities" mm Other liabilities 7 iTotaI liabilities Stockholders equity Common stock and additional 35875235}; 4 Accumulated other comprehensive loss - Retained earnings Total stockholders' equity 1_$100191 $3079 1 2018 2017 31095 33632 7511 15,832 17791 10201 24 683 13, 721 1,294 1,884) 18,301 18,221 i I 1 'i 1 1 $97,258 5 $84,524 m: 5820 $380 541 Q 1 390 I 5, 509 . '2, 892\" 7 147 1 _ 331 7,017 3, 760 i 6, 719017341177? 13,207' 10,177 4er 747 13> 72L-" 1 i I 4 42909 40 ,5841 (760) I _ (227) 1 '7 41,905 33, 9901 84 051 74, 347 1:: 4 Tadabilities and stockholders' equity 7 _ $97, 2581 $84 524 '3 " \"V E I '6 a, $2,576 $2,135 ' ray
