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Week1 10,

Showing financial statement data and stock price data for Mydeco Corp.

a. By how much did Mydeco increase its debt from 2012to 2016??

b. What was? Mydeco's EBITDA/Interest coverage ratio in 2012and 2016??

Did its coverage ratio ever fall below? 2.00?

c. ?Overall, did? Mydeco's ability to meet its interest payments improve or decline over this? period?

a. By how much did Mydeco increase its debt from 2012to 2016?? (Select from the? drop-down menu.)

Mydeco increased its debt by $99.1million from 2012to 2016.

Income Statement	2012	2013	2014	2015	2016
Revenue	402,4	363,7	427,4	510,9	601,1
Cost of Goods Sold	(189.7)	(174.3)	(202.6)	(245.7)	(291.7)
Gross Profit	212,7	189,4	224,8	265,2	309,4
Sales and Marketing	(67.0)	(67.4)	(83.1)	(103.4)	(123.0)
Administration	(59.6)	(60.3)	(59.7)	(66.7)	(79.4)
Depreciation & Amortization	(25.9)	(28.4)	(34.8)	(39.4)	(37.9)
EBIT	60,2	33,3	47,2	55,7	69,1
Interest Income (Expense)	(35.2)	(31.7)	(32.9)	(37.0)	(38.0)
Pretax Income	25	1,6	14,3	18,7	31,1
Income Tax	(8.8)	(0.6)	(5.0)	(6.5)	(10.9)
Net Income	16,2	1	9,3	12,2	20,2
Shares outstanding (millions)	55	55	55	55	55
Earnings per share	$0.29	$0.02	$0.17	$0.22	$0.37
Balance Sheet	2012	2013	2014	2015	2016
Assets
Cash	49,2	67,4	92,5	89,2	91
Accounts Receivable	90,4	71,7	70,7	75,2	86,1
Inventory	34,7	32,6	28,3	29,8	35,7
Total Current Assets	174,3	171,7	191,5	194,2	212,8
Net Property, Plant & Equip.	247,7	239,4	306,6	341,5	350,8
Goodwill & Intangibles	366,4	366,4	366,4	366,4	366,4
Total Assets	788,4	777,5	864,5	902,1	930
Liabilities & Stockholders' Equity
Accounts Payable	17,8	16,6	20,7	26,3	31,3
Accrued Compensation	7,1	5,7	6,3	7,2	8,8
Total Current Liabilities	24,9	22,3	27	33,5	40,1
Long-term Debt	497,1	497,1	570,5	596,2	596,2
Total Liabilities	522	519,4	597,5	629,7	636,3
Stockholders' Equity	266,4	258,1	267	272,4	293,7
Total Liabilities & Stockholders' Equity	788,4	777,5	864,5	902,1	930
Statement of Cash Flows	2012	2013	2014	2015	2016
Net Income	16,2	1	9,3	12,2	20,2
Depreciation & Amortization	25,9	28,4	34,8	39,4	37,9
Chg. in Accounts Receivable	3,9	18,7	1	(4.5)	(10.9)
Chg. in Inventory	(2.9)	2,1	4,3	(1.5)	(5.9)
Chg. in Pay. & Accrued Comp.	1,8	(2.6)	4,7	6,5	6,6
Cash from Operations	44,9	47,6	54,1	52,1	47,9
Capital Expenditures	(26.8)	(24.5)	(97.5)	(76.2)	(40.0)
Cash from Investing Activ.	(26.8)	(24.5)	(97.5)	(76.2)	(40.0)
Dividends Paid	(4.9)	(4.9)	(4.9)	(4.9)	(6.1)
Sale (or purchase) of stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	73,4	25,7	-
Cash from Financing Activ.	(4.9)	(4.9)	68,5	20,8	(6.1)
Change in Cash	13,2	18,2	25,1	(3.3)	1,8
Mydeco Stock Price	$8.07	$3.36	$5.19	$9.11	$11.68

Week1, 8 Showing financial statement data and stock price data for Mydeco Corp. a.How did? Mydeco's accounts receivable days change over this? period? b.How did? Mydeco's inventory days change over this? period? c. Based on your? analysis, has Mydeco improved its management of its working capital during this time? period? (Note: Use a? 365-day year.) a.How did? Mydeco's accounts receivable days change over this? period? The accounts receivable days for 2012is ----------days. ? (Round to one decimal? place.) Income Statement 2012 2013 2014 2015 2016 Revenue 397,2 363,6 421,9 509,2 605,8 Cost of Goods Sold (187.0) (174.6) (203.2) (242.9) (294.2) Gross Profit 210,2 189 218,7 266,3 311,6 Sales and Marketing (67.3) (66.6) (80.9) (104.0) (123.1) Administration (59.0) (59.1) (60.4) (64.7) (76.8) Depreciation & Amortization (26.8) (25.3) (35.5) (39.9) (40.3) EBIT 57,1 38 41,9 57,7 71,4 Interest Income (Expense) (33.4) (32.1) (31.4) (38.0) (39.1) Pretax Income 23,7 5,9 10,5 19,7 32,3 Income Tax (8.3) (2.1) (3.7) (6.9) (11.3) Net Income 15,4 3,8 6,8 12,8 21 Shares outstanding (millions) 53,4 53,4 53,4 53,4 53,4 Earnings per share $0.29 $0.07 $0.13 $0.24 $0.39 Balance Sheet 2012 2013 2014 2015 2016 Assets Cash 47,9 64,9 82,6 75,8 88,6 Accounts Receivable 86,8 69,9 70,6 76,6 84,1 Inventory 32,3 30,4 28,6 29,9 33,7 Total Current Assets 167 165,2 181,8 182,3 206,4 Net Property, Plant & Equip. 242,1 240,1 311,3 349,7 348,7 Goodwill & Intangibles 364,8 364,8 364,8 364,8 364,8 Total Assets 773,9 770,1 857,9 896,8 919,9 Liabilities & Stockholders' Equity Accounts Payable 18,8 17,6 21,1 26,6 32,7 Accrued Compensation 6,6 6,9 6,8 8,1 10,1 Total Current Liabilities 25,4 24,5 27,9 34,7 42,8 Long-term Debt 504,7 504,7 579 602,4 602,4 Total Liabilities 530,1 529,2 606,9 637,1 645,2 Stockholders' Equity 243,8 240,9 251 259,7 274,7 Total Liabilities & Stockholders' Equity 773,9 770,1 857,9 896,8 919,9 Statement of Cash Flows 2012 2013 2014 2015 2016 Net Income 15,4 3,8 6,8 12,8 21 Depreciation & Amortization 26,8 25,3 35,5 39,9 40,3 Chg. in Accounts Receivable 3,9 16,9 -0,7 (6.0) (7.5) Chg. in Inventory (2.9) 1,9 1,8 (1.3) (3.8) Chg. in Pay. & Accrued Comp. 2,8 (0.9) 3,4 6,8 8,1 Cash from Operations 46 47 46,8 52,2 58,1 Capital Expenditures (23.8) (24.0) (97.4) (76.4) (39.0) Cash from Investing Activ. (23.8) (24.0) (97.4) (76.4) (39.0) Dividends Paid (6.0) (6.0) (6.0) (6.0) (6.3) Sale (or purchase) of stock - - - - - Debt Issuance (Pay Down) - - 74,3 23,4 - Cash from Financing Activ. (6.0) (6.0) 68,3 17,4 (6.3) Change in Cash 16,2 17 17,7 (6.8) 12,8 Mydeco Stock Price $6.96 $2.57 $5.97 $8.91 $9.06

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