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See Table below showing financial statement data and stock price data for Mydeco Corp.
a. By what percentage did? Mydeco's revenues grow each year from 2013 to 2016??
b. By what percentage did net income grow each? year?
c. Why might the growth rates of revenues and net income? differ?
2012?--2016 Financial Statement Data and Stock Price Data for Mydeco Corp. | |
?(All data as of fiscal year? end; in? $ millions) |
Income Statement | 2012 | 2013 | 2014 | 2015 | 2016 |
Revenue | 399.8 | 362.6 | 423.7 | 510.7 | 605.9 |
Cost of Goods Sold | ( 183.5 ) | ( 174.5 ) | ( 211.0 ) | ( 246.8 ) | ( 295.8 ) |
Gross Profit | 216.32 | 188.11 | 212.7 | 263.9 | 310.1 |
Sales and Marketing | ( 66.6 ) | ( 67.0 ) | ( 84.2 ) | ( 96.5 ) | ( 120.6 ) |
Administration | ( 60.2 | ( 57.7 ) | ( 57.9 ) | ( 67.2 ) | ( 79.0 ) |
Depreciation? & Amortization | ( 26.7 ) | ( 26.9 ) | ( 34.5 ) | ( 38.6 ) | ( 40.3 ) |
EBIT | 62.8 | 36.5 | 36.1 | 61.6 | 70.2 |
Interest Income? (Expense) | ( 34.9 ) | ( 34.7 ) | ( 31.7 ) | ( 38.7 ) | ( 38.7 ) |
Pretax Income | 27.9 | 1.8 | 4.4 | 22.9 | 31.5 |
Income Tax | ( 9.8 ) | ( 0.6 ) | ( 1.5 ) | ( 8.0 ) | ( 11.0 ) |
Net Income | 18.1 | 1.2 | 2.9 | 14.9 | 20.5 |
Shares Outstanding? (millions) | 56.9 | 56.9 | 56.9 | 56.9 | 56.9 |
Earnings per Share | $ 0.32 | $ 0.02 | $ 0.05 | $ 0.26 | $ 0.36 |
Balance Sheet | 2012 | 2013 | 2014 | 2015 | 2016 |
Assets | | | | | |
Cash | 48.7 | 63.9 | 81.5 | 77.4 | 86.1 |
Accounts Receivable | 87.5 | 69.7 | 69.8 | 76.7 | 84.2 |
Inventory | 31.9 | 30.7 | 28.6 | 29.8 | 33.9 |
Total Current Assets | 168.1 | 164.3 | 179.9 | 183.9 | 204.2 |
Net? Property, Plant? & Equipment | 241.6 | 243.9 | 305.1 | 342.8 | 343.1 |
Goodwill? & Intangibles | 365.3 | 365.3 | 365.3 | 365.3 | 365.3 |
Total Assets | 775.0 | 773.5 | 850.3 | 892.0 | 912.6 |
Liabilities? & Stockholders' Equity |
Accounts Payable | 20.6 | 18.9 | 22.8 | 26.8 | 32.3 |
Accrued Compensation | 7.2 | 6.6 | 7.1 | 7.3 | 8.8 |
Total Current Liabilities | 27.8 | 25.5 | 29.9 | 34.1 | 41.1 |
?Long-Term Debt | 503.4 | 503.4 | 578.8 | 605.4 | 605.4 |
Total Liabilities | 531.2 | 528.9 | 608.7 | 639.5 | 646.5 |
?Stockholders' Equity | 243.8 | 244.6 | 241.6 | 252.5 | 266.1 |
Total Liabilities? & Stockholders' Equity | 775.0 | 773.5 | 850.3 | 892.0 | 912.6 |
Statement of Cash Flows | 2012 | 2013 | 2014 | 2015 | 2016 |
Net Income | 18.1 | 1.2 | 2.9 | 14.9 | 20.5 |
Depreciation? & Amortization | 26.7 | 26.9 | 34.5 | 38.6 | 40.3 |
Change in Accounts Receivable | 3.9 | 17.8 | -0.1 | ( 6.9 ) | ( 7.5 ) |
Change in Inventory | ( 2.9 ) | 1.2 | 2.1 | ( 1.2 ) | ( 4.1 ) |
Change in Pay.? & Accrued Comp. | 1.8 | ( 2.3 ) | 4.4 | 4.2 | 7.0 |
Cash from Operations | 47.6 | 44.8 | 43.8 | 49.6 | 56.2 |
Capital Expenditures | ( 23.6 ) | ( 24.6 ) | ( 96.6 ) | ( 75.3 ) | ( 41.8 ) |
Cash from Investing Activ. | ( 23.6 ) | ( 24.6 ) | ( 96.6 ) | ( 75.3 ) | ( 41.8 ) |
Dividends Paid | ( 5.0 ) | ( 5.0 ) | ( 5.0 ) | ( 5.0 ) | ( 5.7 ) |
Sale? (or Purchase) of Stock | ?- | ?- | ?- | ?- | ?- |
Debt Issuance? (Pay Down) | ?- | ?- | 75.4 | 26.6 | ?- |
Cash from Financing Activ. | ( 5.0 ) | ( 5.0 ) | 70.4 | 21.6 | ( 5.7 ) |
Change in Cash | 19.0 | 15.2 | 17.6 | ( 4.1 ) | 8.7 |
Mydeco Stock Price | $ 8.59 | $ 2.94 | $ 5.48 | $ 9.12 | $ 9.11 |
Answer & Explanation
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