Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. a. By what percentage did Mydeco's revenues grow each year

See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. a. By what percentage did Mydeco's revenues grow each year from -? b. By what percentage did net income grow each year? c. Why might the growth rates of revenues and net income differ?

image text in transcribed

image text in transcribed

a. By what percentage did Mydeco's revenues grow each year from 2016-2019?

The revenues growth for year 2016 is _____%. (Round to two decimal places.)

The revenues growth for year 2017 is _____%. (Round to two decimal places.)

The revenues growth for year 2018 is _____%. (Round to two decimal places.)

The revenues growth for year 2019 is _____%. (Round to two decimal places.)

b. By what percentage did net income grow each year?

The net income growth for year 2016 is _____ %. (Round to two decimal places.)

The net income growth for year 2017 is _____ %. (Round to two decimal places.)

The net income growth for year 2018 is _____ %. (Round to two decimal places.)

The net income growth for year 2019 is _____ %. (Round to two decimal places.)

c. Why might the growth rates of revenues and net income differ?(Select from the drop-down menus.)

Net income growth rate differs from revenue growth rate because cost of goods sold and other expenses can move at different rates than revenues. For example, revenues (declined/increased) in 2016 by 10.11%, however, cost of goods sold (increased/declined) by 7.27%.

2015..2n19 Financial Statement Data and Stork Prico Mata for Mucloco Corn \begin{tabular}{lrrrrrrr} Stockholders' Equity & 264.4 & 256.5 & 270.6 & 278.6 & 302.4 \\ \hline Total Liabilities \& Stockholders' & 784.3 & 775.2 & 871.2 & & 911.8 & 941.1 \\ Equity & & & & & & & \\ Statement of Cash Flows & 2015 & 2016 & 2017 & 2018 & 2019 \\ \hline Net Income & 22.6 & 1.0 & 12.7 & 16.0 & 27.1 \\ Depreciation \& Amortization & 27.0 & 25.9 & 32.9 & 39.3 & 37.0 \\ Change in Accounts Receivable & 3.9 & 19.3 & 2.6 & (4.0) & (11.1) \\ Change in Inventory & (2.9) & 4.7 & 4.2 & (3.2) & (5.2) \\ Change in Pay. \& Accrued Comp. & 2.4 & (1.2) & 7.3 & 6.0 & 5.5 \\ \hline Cash from Operations & 53.0 & 49.7 & 54.5 & 54.1 & 53.3 \\ Capital Expenditures & (23.5) & (26.3) & (96.0) & (74.1) & (41.0) \\ \hline Cash from Investing Activ. & (23.5) & (26.3) & (96.0) & (74.1) & (41.0) \\ Dividends Paid & (5.3) & (5.3) & (5.3) & (5.3) & (5.6) \\ Sale (or Purchase) of Stock & & & & & \\ Debt Issuance (Pay Down) & & & 74.6 & 26.6 & \\ \hline Cash from Financing Activ. & (5.3) & (5.3) & 69.3 & 21.3 & (5.6) \\ Change in Cash & 24.2 & 18.1 & 27.8 & 1.3 & 6.7 \\ Mydeco Stock Price & $7.43 & $3.34 & $4.34 & $8.83 & $10.53 \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance A Contemporary Application Of Theory To Policy

Authors: David N. Hyman

5th Edition

0030113172, 978-0030113178

More Books

Students also viewed these Finance questions