An income statement for Group Danone, a French-based food processor that publishes IFRS-based financial statements, follows (in million euros):

Net sales ....................12,776

Operating expenses .................(11,230)

Operating income ................ 1,546

Net cost of debt .................. (177)

Income before taxes ............... 1,369

Income tax ................... (410)

Income from consolidated companies ......... 959

Net income of equity-accounted affiliates ...... 87

Net income from continuing operations .......1,046

Net income from discontinued operations .......3,292

Net income ................... 4,338

a. Briefly explain each of the line items on the income statement.

b. Explain what must have happened at Danone that boosted net income by so much, and comment on possible implications for Danone’s future.