P2-33 (similar to)

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

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

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

(Select from the drop-down menu.)

Mydeco increased its debt by $99.7 or $0.0 or $26.5 million from 2012 to 2016.

Income Statement	2012	2013	2014	2015	2016
Revenue	388.2	359.5	420.7	508.6	600.1
Cost of Goods Sold	(192.9)	(172.3)	(206.5)	(242.9)	(297.4)
Gross Profit	195.3	187.2	214.2	265.7	302.7
Sales and Marketing	(65.8)	(66.2)	(82.6)	(105.9)	(122.4)
Administration	(62.1)	(57.8)	(59.4)	(67.6)	(77.1)
Depreciation & Amortization	(27.2)	(27.1)	(32.4)	(40.1)	(39.3)
EBIT	40.2	36.1	39.8	52.1	63.9
Interest Income (Expense)	(32.4)	(34.1)	(31.4)	(37.9)	(41.3)
Pretax Income	7.8	2	8.4	14.2	22.6
Income Tax	(2.7)	(0.7)	(2.9)	(5.0)	(7.9)
Net Income	5.1	1.3	5.5	9.2	14.7
Shares outstanding (millions)	55.4	55.4	55.4	55.4	55.4
Earnings per share	$0.09	$0.02	$0.10	$0.17	$0.27
Balance Sheet	2012	2013	2014	2015	2016
Assets
Cash	49.4	68.7	88.9	77.9	81.2
Accounts Receivable	90.3	70.9	71.5	76.7	85.8
Inventory	34.8	31.7	27.2	30.7	34.3
Total Current Assets	174.5	171.3	187.6	185.3	201.3
Net Property, Plant & Equip.	248.6	242.1	313.9	342.1	343.5
Goodwill & Intangibles	363.1	363.1	363.1	363.1	363.1
Total Assets	786.2	776.5	864.6	890.5	907.9
Liabilities & Stockholders' Equity
Accounts Payable	16.8	16.1	23.7	26.1	31.1
Accrued Compensation	6.8	5.7	7.7	7.7	9.3
Total Current Liabilities	23.6	21.8	31.4	33.8	40.4
Long-term Debt	499.4	499.4	572.6	599.1	599.1
Total Liabilities	523	521.2	604	632.9	639.5
Stockholders' Equity	263.2	255.3	260.6	257.6	268.4
Total Liabilities & Stockholders' Equity	786.2	776.5	864.6	890.5	907.9
Statement of Cash Flows	2012	2013	2014	2015	2016
Net Income	5.1	1.3	5.5	9.2	14.7
Depreciation & Amortization	27.2	27.1	32.4	40.1	39.3
Chg. in Accounts Receivable	3.9	19.4	-0.6	(5.2)	(9.1)
Chg. in Inventory	(2.9)	3.1	4.5	(3.5)	(3.6)
Chg. in Pay. & Accrued Comp.	1.7	(1.8)	9.6	2.4	6.6
Cash from Operations	35	49.1	51.4	43	47.9
Capital Expenditures	(26.9)	(25.0)	(99.6)	(75.7)	(38.8)
Cash from Investing Activ.	(26.9)	(25.0)	(99.6)	(75.7)	(38.8)
Dividends Paid	(4.8)	(4.8)	(4.8)	(4.8)	(5.8)
Sale (or purchase) of stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	73.2	26.5	-
Cash from Financing Activ.	(4.8)	(4.8)	68.4	21.7	(5.8)
Change in Cash	3.3	19.3	20.2	(11.0)	3.3
Mydeco Stock Price	$6.93	$3.24	$4.63	$8.72	$10.67