c. Compute net operating profit after taxes (NOPAT) and net operating profit margin (NOPM) for each year. Assume a statutory tax rate of 25%. NOPAT (Round your answer to the nearest million dollar.) $ NOPM (Round your answer to one decimal place.) 2017 3,202 * $ 0% X 2016 0 x 0% *
c. Compute net operating profit after taxes (NOPAT) and net operating profit margin (NOPM) for each year. Assume a statutory tax rate of 25%. NOPAT (Round your answer to the nearest million dollar.) $ NOPM (Round your answer to one decimal place.) 2017 3,202 * $ 0% X 2016 0 x 0% *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:c. Compute net operating profit after taxes (NOPAT) and net operating profit margin (NOPM) for each year.
Assume a statutory tax rate of 25%.
NOPAT (Round your answer to the nearest million dollar.) $
NOPM (Round your answer to one decimal place.)
2017
3,202 * $
0% X
2016
0 x
0% X

Transcribed Image Text:Identifying Operating and Nonrecurring Income Components
Following is the The Dow Chemical Company income statement.
($ millions) For Year Ended December 31
Net sales
Cost of sales
Research and development expenses
Selling, general, and administrative expenses
Amortization of intangibles
Restructuring, goodwill impairment and asset-related charges-net
Integration and separation costs
Asbestos-related charge
Equity in earnings of nonconsolidated affiliates
Sundry income (expense)-net
Interest expense and amortization of debt discount
Income from continuing operations before income taxes
Provision (Credit for income taxes on continuing operations)
Income from continuing operations, net of tax
Loss from discontinued operations, net of tax
Net income
2017
2016
$62,484 $48,158
50,414 37,640
2,110 1,584
4,021
2,956
1,013
544
3,280
595
1,101
349
1,113
764
442
966
1,452
1,082
858
1,193 4,413
(476)
9
1,669
4,404
(77)
$1,592 $4,404
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