4. Determine FLEV and Spread and the noncontrolling interest ratio (if applicable). Show that: ROE = [RNOA + (FLEV x Spread)] x Noncontrolling interest ratio Compare the components of the equation for each company over time and follow up on any differences. Consolidated Balance Sheet USD ($)$in Millions Dec. 31, 2018 1 increase or decrease % Assets 2 Cash and cash equivalents $9,342 3 3.68% Time deposits 950 0.37% Marketable securities 53 0.02% Accounts and notes receivable (less allowance: 2018- $869; 2017 - $490) 15,050 6 5.93 % Inventories: 7 Crude oil and petroleum products 3,383 8 1.33% Chemicals 487 9 0.19% Materials, supplies and other 1,834 10 0.72% Total inventories 5,704 11 2.25% 2,922 Prepaid expenses and other current assets 12 1.15% Total Current Assets 34,021 13 13.40% Long-term receivables, net 1,942 14 0.76% Investments and advances 35,546 15 14.00% Properties, plant and equipment, at cost 340,244 16 134.03 % Less: Accumulated depreciation, depletion and amortization 171,037 17 67.37% Properties, plant and equipment, net 169,207 18 66.65% Deferred charges and other assets 6,766 19 2.67% 4,518 Goodwill 20 1.78% Assets held for sale 1,863 21 0.73% Total Assets 253,863 22 100.00 % Liabilities and Equity 23 Short-term debt 5,726 24 2.26% Accounts payable 13,953 25 5.50% 4,927 Accrued liabilities 26 1.94% Federal and other taxes on income 1,628 27 0.64% Other taxes payable 937 28 0.37 % Total Current Liabilities 27,171 29 10.70% Long-term debt [1] 28,733 30 11.32% Deferred credits and other noncurrent obligations 19,742 31 7.78% Noncurrent deferred income taxes 15,921 32 6.27% Noncurrent employee benefit plans 6,654 33 2.62% 98,221 Total Liabilities [2] 34 38.69 % Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued) 35 0 Common stock (authorized 6,000,000,000 shares; $0.75 par value; 2,442,676,580 shares issued at December 31, 2018 and 2017) Capital in excess of par value 1,832 36 0.72% 17,112 37 6.74% Retained earnings 180,987 38 71.29% Accumulated other comprehensive losses (3,544) 39 1.40% Deferred compensation and benefit plan trust (240) 40 -0.09 % Treasury stock, at cost (2018 -539,838,890 shares; 2017-537,974,695) (41,593) 41 -16.38% Total Chevron Corporation Stockholders' Equity 154,554 42 60.88% Noncontrolling interests 1,088 43 0.43% Total Equity 155,642 44 61.31% Total Liabilities and Equity $ 253,863 45 100.00% 46 Includes capital lease obligations of $127 and $94 at December 31, 2018 and 2017 respectively Refer to Note 23, "Other Contingencies and Commitments" beginning on page 86 [1] 47 [2] 48