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% *

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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: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
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 $4,404
Transcribed Image Text:Identifying Operating and Nonrecurring Income Components Following is the The Dow Chemical Company income statement. ($ 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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