Identifying Operating and Nonrecurring Income Components Following is the The Dow Chemical Company income statement. ($ millions) For Year Ended December 31 2014 2013 Net sales $58,167 $57,080 Cost of sales 47,464 47.594 Research and development expenses 1,647 1,747 Selling general, and administrative expenses 3,106 3,024 Amortization of intangibles 436 461 Goodwill and other intangible asset impairment losses 50 Restructuring charges (credits) (3) (22) Asbestos-related charge 78 Equity in earnings of nonconsolidated affiliates 835 1,034 Sundry income (expense)-net (27) 2,554 Interest income 51 Interest expense and amortization of debt discount 983 1,101 Income before income taxes 5,265 5,804 Provision for income taxes 1,426 1,988 Net income $3,839 $4,816 Required a. Identify the components in its statement that you would consider operating. b. Identify those components that you would consider nonrecurring. ($ millions) For Year Ended December 31 a. b. 2014 2013 Operating? Nonrecurring? Net sales $58,167 $57,080 Yes Cost of sales 47,464 47,594 Yes # No Research and development expenses 1,647 1,747 Yes No Selling general, and administrative expenses 3,106 3,024 Yes Mo Amortization of intangibles 436 461 Yes No Goodwill and other intangible asset impairment losses 50 Yes Yes Restructuring charges (credits) (3) (22) Yes Yes Asbestos-related charge 78 Yes Yes Equity in earnings of nonconsolidated affiliates 835 1,034 Yes No Sundry income (expense)-net (27) 2,554 No No Interest income 51 41 No No Interest expense and amortization of debt discount 983 1,101 No No Income before income taxes 5,265 5,804 Provision for income taxes 1,426 1,988 Yes No Net income $3,839 $4,816c. Compute net operating profit after taxes (NOPAT) and net operating profit margin (NOPM) for each year. Assume a statutory tax rate of 35%. 2014 2013 NOPAT (Round your answer to the nearest million dollar.) $ 2.495.35 x $ 3,130.04 x NOPM (Round your answer to one decimal place.) 6.59 % x 8.44 % X