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 |
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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
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