Requirements:

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?

2016 601.3 (292.0) 309.3 (121.3) (77.0) (40.4) 70.6 (40.9) 29.7 (10.4) 19.3 56.2 $0.34 2016 21.6 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 Revenue 406.8 364.2 428.5 512.4 Cost of Goods Sold (192.7) (177.1) (203.3) (249.4) Gross Profit 214.1 187.1 225.2 263.0 Sales and Marketing (68.3) (66.0) (82.1) (98.0) Administration (60.4) (57.3) (60.5) (65.1) Depreciation & Amortization (29.2) (28.0) (35.8) (39.6) EBIT 56.2 35.8 46.8 60.3 Interest Income (Expense) (34.6) (31.9) (32.8) (39.0) Pretax Income 3.9 14.0 21.3 Income Tax (7.6) (1.4) (4.9) (7.5) Net Income 14.0 2.5 9.1 13.8 Shares Outstanding (millions) 56.2 56.2 56.2 56.2 Earnings per Share $0.25 $0.04 $0.16 $0.25 Balance Sheet 2012 2013 2014 2015 Assets Cash 47.4 70.3 90.4 82.7 Accounts Receivable 89.9 67.9 71.1 76.8 Inventory 34.8 31.4 27.3 32.6 Total Current Assets 172.1 169.6 188.8 192.1 Net Property, Plant & Equipment 240.5 246.8 313.5 346.8 Goodwill & Intangibles 362.7 362.7 362.7 362.7 Total Assets 775.3 779.1 865.0 901.6 Liabilities & Stockholders' Equity Accounts Payable 19.9 18.5 20.2 25.7 Accrued Compensation 6.7 6.8 6.1 8.2 Total Current Liabilities 26.6 25.3 33.9 Long-Term Debt 502.6 502.6 579.0 604.2 Total Liabilities 529.2 527.9 605.3 638.1 Stockholders' Equity 246.1 251.2 259.7 263.5 Total Liabilities & Stockholders' 775.3 779.1 865.0 901.6 Equity 90.3 86.3 36.1 212.7 345.4 362.7 920.8 26.3 32.4 9.5 41.9 604.2 646.1 274.7 920.8 2016 19.3 Statement of Cash Flows Net Income Depreciation & Amortization Change in Accounts Receivable Change in Inventory Change in Pay & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activ. Dividends Paid Sale (or Purchase of Stock 2012 14.0 29.2 3.9 (2.9) 2.3 46.5 (25.8) (25.8) (6.1) 2013 2.5 28.0 22.0 3.4 (1.3) 54.6 (25.6) (25.6) (6.1) 2014 9.1 35.8 -3.2 4.1 1.0 46.8 (97.0) (97.0) (6.1) 2015 13.8 39.6 (5.7) (5.3) 7.6 50.0 (76.8) (76.8) (6.1) 40.4 (9.5) (3.5) 8.0 54.7 (40.7) (40.7) (6.4) Debt Issuance (Pay Down) Cash from Financing Activ. Change in Cash Mydeco Stock Price (6.1) 14.6 $7.57 (6.1) 22.9 $2.56 76.4 70.3 20.1 $4.47 25.2 19.1 (7.7) $8.33 (6.4) 7.6 $12.34