At the end of 2013, Nectorage announced that they would be expanding their R&D and commercial...

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At the end of 2013, Nectorage announced that they would be expanding their R&D and commercial spending to pursue new market opportunities. Their 2014-2015 income statements are as shown bellow. How did they do? Implications for their future? (high-level thoughts) Year ending 12/31 2015 2014 2013 Sales $935 $765 $750 Cost of Goods Sold $415 $375 $350 Gross Profit $520 $390 $400 R&D $350 $375 $225 SG&A $215 $195 $150 Total Expenses $565 $570 $375 Operating Profit ($45) ($180) $25 Interest $20 $15 $15 Income Before Tax ($65) ($195) $10 Taxes $15 $10 $3 Net Income ($80) ($205) $7 At the end of 2013, Nectorage announced that they would be expanding their R&D and commercial spending to pursue new market opportunities. Their 2014-2015 income statements are as shown bellow. How did they do? Implications for their future? (high-level thoughts) Year ending 12/31 2015 2014 2013 Sales $935 $765 $750 Cost of Goods Sold $415 $375 $350 Gross Profit $520 $390 $400 R&D $350 $375 $225 SG&A $215 $195 $150 Total Expenses $565 $570 $375 Operating Profit ($45) ($180) $25 Interest $20 $15 $15 Income Before Tax ($65) ($195) $10 Taxes $15 $10 $3 Net Income ($80) ($205) $7