Compute ROE and Nonoperating Return with Negative NNO and No Noncontrolling Interest 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 $$55,838$ Costs and expenses Cost of revenue $9,355$ Research and development $10,273$ Marketing and sales $7,846$ General and administrative $3,451$ Total costs and expenses $30,925$ Income from operations $24,913$ Interest and other income $($expense$),$ net $448$ Income before provision for income taxes $25,361$ Provision for income taxes $3,249$ Net income $$22,112$ FACEBOOK INC. Consolidated Balance Sheet At December $31,$ $ millions $20182017$ Current assets Cash and cash equivalents $$10,019$ $$8,079$ Marketable securities $31,09533,632$ Accounts receivable, net $7,5875,832$ Prepaid expenses and other current assets $1,7791,020$ Total current assets $50,48048,563$ Property and equipment, net $24,68313,721$ Intangible assets, net $1,2941,884$ Goodwill $18,30118,221$ Other assets $2,576$ Compute ROE and Nonoperating Return with Negative NNO and No Noncontrolling Interest

Refer to the balance sheets and income statement below for Facebook Inc. a$.$ Compute ROE. b$.$ Compute net nonoperating obligations $($NNO$)$ for $2018$ and $2017,$ net nonoperating expense $($NNE$),$ and the NNE as a percentage of NNO $($NNEP$),$ assuming a $22\%$ statutory tax

rate.

c$.$ Compute FLEV and Spread. $.$ Show that ROE $=$ RNOA FLEV $$ Spread