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Explain the operating and nonoperating parts of corporate activities; operating vs nonoperating assets, liabilities and income or loss. Why is the distinction between operating and

Explain the operating and nonoperating parts of corporate activities; operating vs nonoperating assets, liabilities and income or loss.

Why is the distinction between operating and non-operating is important for investors and other financial statement users?

Take into account NOPAT (net operating profit after taxes), which is a part of RNOA computation. ROE can be decomposed, according to Du Pont formula, into different components.

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