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 Cost of Goods Sold Gross Profit $935 $415 $520 $765 $375 $390 $750 $350 $400 R&D SG&A Total Expenses $350 $215 $565 $375 $195 $570 $225 $150 $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 Cost of Goods Sold Gross Profit $935 $415 $520 $765 $375 $390 $750 $350 $400 R&D SG&A Total Expenses $350 $215 $565 $375 $195 $570 $225 $150 $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