Refer to the Merck income statement presented at the very beginning of the chapter, and note that the company reported fluctuating profits of $6.3 billion, $4.5 billion, and $12.0 billion in 2012, 2013, and 2014, respectively. Restructuring charges were significant across the three years; equity income affiliates dipped across the three years; and there were large non-operating items during the three-year period for “other” expenses/income. Discuss how each of these non-operating items influenced the basic accounting equation, and compute Merck’s net operating income for the three years. Comment on Merck’s earnings trend.