The 2018 balance sheets and income statement for Netflix Inc. follow. Refer to these financial statements to answer the requirements. NETFLIX INC. Consolidated Statements of Earnings For Year Ended December 31, $ thousands Revenues 2018 $15,953,439 Cost of revenues 9,967,538 Marketing 2,528,567 Technology and development 1,221,814 General and administrative 789,392 Operating income 1,446,128 Other income (expense) Interest expense (420,493) Interest and other income 200,823 Income before income taxes 1,226,458 Provision for income taxes 15,216 Net income $1,211,242 NETFLIX INC. Consolidated Balance Sheets in thousands, except par value Current assets Cash and cash equivalents 2018 2017 $3,953,581 $2,822,795 Current content assets, net Other current assets Total current assets Noncurrent content assets, net Property and equipment, net Other noncurrent assets Total assets Current liabilities Current content liabilities Accounts payable 5,151,186 4,470,032 907,564 10,012,331 536,245 7,829,072 14,960,954 10,530,153 319,404 811,407 577,379 901,030 $26,451,694 $19,490,036 $4,686,019 $4,332,139 722,083 359,555 Accrued expenses 477,417 474,192 Deferred revenue 919,997 618,622 Total current liabilities 6,805,516 5,784,508 Noncurrent content liabilities 3,918,124 3,329,796 Long-term debt 10,360,058 6,499,432 Other noncurrent liabilities 129,231 135,246 Total liabilities 21,212,929 15,748,982 Stockholders' equity Preferred stock, $0.001 par value Common stock, $0.001 par value Accumulated other comprehensive loss Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Combined federal and state statutory tax rate 0 0 2,315,988 (19,582) 2,030,494 (20,557) 2,942,359 1,731,117 5,238,765 3,741,054 $26,451,694 $19,490,036 22% (a) Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. NOPAT (b) Compute net operating assets (NOA) for 2018 and 2017. Year NOA 2018 $ 11,645,242 2017 $ 7,417,691 (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Do not use NOPM x NOAT to calculate RNOA. Do not round until your final answer. Numerator Denominator RNOA Numerator Denominator NOPM $ 15,953,439 0% Numerator Denominator $ 15,953,439 $ NOAT (d) Compute net nonoperating obligations (NNO) for 2018 and 2017. Confirm the relation: NOA = NNO + Total equity. Year NNO 2018 $ 6,406,477 2017 $3,676,637 Year NNO Total equity 2018 $ 6,406,477 $ 5,238,765 2017 $ 3,676,637 $ 3,741,054 NOA 11,645,242 7,417,691 (e) Compute return on equity (ROE) for 2018. Numerator Denominator ROE $ (f) Infer the nonoperating return component of ROE for 2018. Use above answers to calculate. Nonoperating component of ROE 0% ROE RNOA % %