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 Goodwill and other intangible asset impairment losses Restructuring charges (credits) Asbestos-related charge Equity in earnings of nonconsolidated affiliates Sundry income (expense)-net Interest income Interest expense and amortization of debt discount Income before income taxes Provision for income taxes Net income 2014 2013 $58,167 $57,080 47,464 47,594 1,647 1,747 3,106 3,024 436 461 50 (3) 78 835 1,034 (27) 2,554 51 41 983 1,101 5,265 6,804 1,426 1,988 $3,839 $4,816 (22)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 35%.
NOPAT (Round your answer to the nearest million dollar.) $
NOPM (Round your answer to one decimal place.)
Check
2014
2,945 * $
7.8% *
2013
2,050 x
5.5% *
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 35%. NOPAT (Round your answer to the nearest million dollar.) $ NOPM (Round your answer to one decimal place.) Check 2014 2,945 * $ 7.8% * 2013 2,050 x 5.5% *
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
Goodwill and other intangible asset impairment losses
Restructuring charges (credits)
Asbestos-related charge
Equity in earnings of nonconsolidated affiliates
Sundry income (expense)-net
Interest income
Interest expense and amortization of debt discount
Income before income taxes
Provision for income taxes
Net income
2014 2013
$58,167 $57,080
47,464 47,594
1,647
1,747
3,106 3,024
436
461
50
(3)
78
835 1,034
(27) 2,554
51
41
983
1,101
5,265
6,804
1,426
1,988
$3,839 $4,816
(22)
Transcribed Image Text:Identifying Operating and Nonrecurring Income Components Following is the The Dow Chemical Company income statement. ($ millions) For Year Ended December 31 Net sales Cost of sales Research and development expenses Selling, general, and administrative expenses Amortization of intangibles Goodwill and other intangible asset impairment losses Restructuring charges (credits) Asbestos-related charge Equity in earnings of nonconsolidated affiliates Sundry income (expense)-net Interest income Interest expense and amortization of debt discount Income before income taxes Provision for income taxes Net income 2014 2013 $58,167 $57,080 47,464 47,594 1,647 1,747 3,106 3,024 436 461 50 (3) 78 835 1,034 (27) 2,554 51 41 983 1,101 5,265 6,804 1,426 1,988 $3,839 $4,816 (22)
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