Question: Construct the Du Pont Equations for Prospec. What does it tell us? 20X7 20X8 20X8 Sales $1,578 $2,106 $3,265 COGS 631 906 1,502 Gross Margin

Construct the Du Pont Equations for Prospec. What does it tell us?



20X7

20X8

20X8

Sales

$1,578

$2,106

$3,265

COGS

631

906

1,502

Gross Margin

$ 947

$1,200

$1,763





Expenses




Marketing

$316

$495

$882

R & D

158

211

327

Admin.

126

179

294

Total Expenses

$ 600

$ 885

$1,503





EBIT

$347

$315

$260

Interest

63

95

143

EBT

$284

$220

$117

Tax

97

75

40

EAT

$187

$145

$ 77


20X7

20X8

20X9

ASSETS




Cash

$ 30

$ 40

$ 62

Accounts Receivable

175

351

590

Inventory

90

151

300

Current Assets

$ 295

$ 542

$ 952

Fixed Assets




Gross

$1,565

$2,373

$2,718

Accum. Depreciation

(610)

(860)

(1,135)

Net

$ 955

$1,513

$1,583





Total Assets

$1,250

$2,055

$2,535





LIABILITIES




Accounts Payable

$56

$81

$134

Accruals

15

20

30

Current Liabilities

$71

$101

$164





Capital




Long-Term Debt

$630

$1,260

$1,600

Equity

549

694

771

Total Liability & Equity

$1,250

$2,055

$2,535

Step by Step Solution

3.54 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To construct the Du Pont equations for Prospec and interpret them we will calculate and analyze the Return on Equity ROE using the Du Pont formula The ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!