See Table below showing financial statement data and stock price data for Mydeco Corp

(Note: Use a 365-day year.)

a. How did Mydeco's accounts receivable days change over this period?

The accounts receivable days for 2012 is _____________days. (Round to one decimal place.)

The accounts receivable days for 2016 is __________days. (Round to one decimal place.)

b. How did Mydeco's inventory days change over this period?

Inventory days for 2012 is _____________days. (Round to one decimal place.)

Inventory days for 2016 is _____________days. (Round to one decimal place.)

c. Based on your analysis, has Mydeco improved its management of its working capital during this time period? (Select the best choice below.)

Between 2012 and 2016, Mydeco's working capital management was _____________worsened or improved by both __________reducing or increasing accounts receivable days and inventory days.

Income Statement 2012 2013 2014 2015 2016

Revenue 409.2 363.7 421.5 512.3 599.3

Cost of Goods Sold (186.4) (175.3) (205.6) (244.5) (292.7)

Gross Profit 222.8 188.4 215.9 267.8 306.6

Sales and Marketing (67.0) (64.9) (83.6) (97.7) (123.9)

Administration (59.1) (59.3) (58.3) (67.1) (77.5)

Depreciation & Amortization (27.5) (28.1) (33.6) (40.4) (39.9)

EBIT 69.2 36.1 40.4 62.6 65.3

Interest Income (Expense) (35.0) (33.1) (34.0) (35.7) (40.8)

Pretax Income 34.2 3.0 6.4 26.9 24.5

Income Tax (12.0) (1.1) (2.2) (9.4) (8.6)

Net Income 22.2 1.9 4.2 17.5 15.9

Shares outstanding (millions) 56.7 56.7 56.7 56.7 56.7

Earnings per share $0.39 $0.03 $0.07 $0.31 $0.28

Balance Sheet 2012 2013 2014 2015 2016

Assets

Cash 48.7 67.2 86.5 81.3 85.2

Accounts Receivable 86.9 67.9 67.8 77.9 86.8

Inventory 31.9 32.6 29.9 30.6 33.9

Total Current Assets 167.5 167.7 184.2 189.8 205.9

Net Property, Plant & Equip. 245.3 245.6 309.8 341.9 351.7

Goodwill & Intangibles 362.4 362.4 362.4 362.4 362.4

Total Assets 775.2 775.7 856.4 894.1 920.0

Liabilities & Stockholders' Equity

Accounts Payable 17.4 19.1 23.7 25.3 31.3

Accrued Compensation 7.6 6.9 7.7 8.9 8.9

Total Current Liabilities 25.0 26.0 31.4 34.2 40.2

Long-term Debt 500.4 500.4 574.6 598.1 598.1

Total Liabilities 525.4 526.4 606.0 632.3 638.3

Stockholders' Equity 249.8 249.3 250.4 261.8 281.7

Total Liabilities & Stockholders' Equity 775.2 775.7 856.4 894.1 920.0

Statement of Cash Flows 2012 2013 2014 2015 2016

Net Income 22.2 1.9 4.2 17.5 15.9

Depreciation & Amortization 27.5 28.1 33.6 40.4 39.9

Chg. in Accounts Receivable 3.9 19.0 0.1 (10.1) (8.9)

Chg. in Inventory (2.9) (0.7) 2.7 (0.7) (3.3)

Chg. in Pay. & Accrued Comp. 1.5 1.0 5.4 2.8 6.0

Cash from Operations 52.2 49.3 46.0 49.9 49.6

Capital Expenditures (26.7) (25.9) (96.0) (73.7) (38.7)

Cash from Investing Activ. (26.7) (25.9) (96.0) (73.7) (38.7)

Dividends Paid (4.9) (4.9) (4.9) (4.9) (7.0)

Sale (or purchase) of stock - - - - -

Debt Issuance (Pay Down) - - 74.2 23.5 -

Cash from Financing Activ. (4.9) (4.9) 69.3 18.6 (7.0)

Change in Cash 20.6 18.5 19.3 (5.2) 3.9

Mydeco Stock Price $8.05 $3.71 $5.13 $8.37 $8.95