Identifying Operating Income Components Following is the income statement information from Apollo Medical Devices. Identify the components that we would consider operating. $ thousands 2020 Net sales $4,163,770 Answer Cost of sales before special charges 1,382,235 Answer Special inventory obsolescence charge 27,876 Answer Total cost of sales 1,410,111 Gross profit 2,753,659 Selling, general and administrative expense 1,570,667 Answer Research and development expense 531,086 Answer Merger and acquisition costs 46,914 Answer In-process research and development charges 12,244 Answer Litigation settlement 16,500 Answer Operating profit 576,248 Interest expense (57,372) Answer Interest income 2,076 Answer Gain on disposal of fixed assets 4,929 Answer Impairment of marketable securities (5,222) Answer Other income (expense), net (2,857) Answer Earnings before income taxes 517,802 Income tax expense 191,587 Answer Net earnings $326,215