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

See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. By what percentage did Mydeco's revenues grow each year from 20132013 to 20162016? b. By what percentage did net income grow each year? c. Why might the growth rates of revenues and net income differ?

--20162016

Financial Statement Data and Stock Price Data for Mydeco Corp.

(All data as of fiscal year end; in $ millions)

Income Statement

20122012

20132013

20142014

20152015

20162016

Revenue

404.3404.3

363.8363.8

424.6424.6

510.7510.7

604.1604.1

Cost of Goods Sold

( 188.3 )(188.3)

( 173.8 )(173.8)

( 206.2 )(206.2)

( 246.8 )(246.8)

( 293.4 )(293.4)

Gross Profit

216.0216.0

190.0190.0

218.4218.4

263.9263.9

310.7310.7

Sales and Marketing

( 66.7 )(66.7)

( 66.4 )(66.4)

( 82.8 )(82.8)

( 102.1 )(102.1)

( 120.8 )(120.8)

Administration

( 60.6 )(60.6)

( 59.1 )(59.1)

( 59.4 )(59.4)

( 66.4 )(66.4)

( 78.5 )(78.5)

Depreciation & Amortization

( 27.3 )(27.3)

( 27.0 )(27.0)

( 34.3 )(34.3)

( 38.4 )(38.4)

( 38.6 )(38.6)

EBIT

61.461.4

37.537.5

41.941.9

57.057.0

72.872.8

Interest Income (Expense)

( 33.7 )(33.7)

( 32.9 )(32.9)

( 32.2 )(32.2)

( 37.4 )(37.4)

( 39.4 )(39.4)

Pretax Income

27.727.7

4.64.6

9.79.7

19.619.6

33.433.4

Income Tax

( 9.7 )(9.7)

( 1.6 )(1.6)

( 3.4 )(3.4)

( 6.9 )(6.9)

( 11.7 )(11.7)

Net Income

18.018.0

3.03.0

6.36.3

12.712.7

21.721.7

Shares Outstanding (millions)

5555

5555

5555

5555

5555

Earnings per Share

$ 0.33$0.33

$ 0.05$0.05

$ 0.11$0.11

$ 0.23$0.23

$ 0.39$0.39

Balance Sheet

20122012

20132013

20142014

20152015

20162016

Assets

Cash

48.848.8

68.968.9

86.386.3

77.577.5

85.085.0

Accounts Receivable

88.688.6

69.869.8

69.869.8

76.976.9

86.186.1

Inventory

33.733.7

30.930.9

28.428.4

31.731.7

35.335.3

Total Current Assets

171.1171.1

169.6169.6

184.5184.5

186.1186.1

206.4206.4

Net Property, Plant & Equipment

245.3245.3

243.3243.3

309.0309.0

345.6345.6

347.0347.0

Goodwill & Intangibles

361.7361.7

361.7361.7

361.7361.7

361.7361.7

361.7361.7

Total Assets

778.1778.1

774.6774.6

855.2855.2

893.4893.4

915.1915.1

Liabilities & Stockholders' Equity

Accounts Payable

18.718.7

17.917.9

22.022.0

26.826.8

31.731.7

Accrued Compensation

6.76.7

6.46.4

7.07.0

8.18.1

9.79.7

Total Current Liabilities

25.425.4

24.324.3

29.029.0

34.934.9

41.441.4

Long-Term Debt

500.0500.0

500.0500.0

575.0575.0

600.0600.0

600.0600.0

Total Liabilities

525.4525.4

524.3524.3

604.0604.0

634.9634.9

641.4641.4

Stockholders' Equity

252.7252.7

250.3250.3

251.2251.2

258.5258.5

273.7273.7

Total Liabilities & Stockholders' Equity

778.1778.1

774.6774.6

855.2855.2

893.4893.4

915.1915.1

Statement of Cash Flows

2012

2013

2014

2015

2016

Net Income

18.0

3.0

6.3

12.7

21.7

Depreciation & Amortization

27.3

27.0

34.3

38.4

38.6

Change in Accounts Receivable

3.9

18.8

0.0

( 7.1 )

( 9.2 )

Change in Inventory

( 2.9 )

2.8

2.5

( 3.3 )

( 3.6 )

Change in Pay. & Accrued Comp.

2.2

( 1.1 )

4.7

5.9

6.5

Cash from Operations

48.5

50.5

47.8

46.6

54.0

Capital Expenditures

( 25.0 )

( 25.0 )

( 100.0 )

( 75.0 )

( 40.0 )

Cash from Investing Activ.

( 25.0 )

( 25.0 )

( 100.0 )

( 75.0 )

( 40.0 )

Dividends Paid

( 5.4 )

( 5.4 )

( 5.4 )

( 5.4 )

( 6.5 )

Sale (or Purchase) of Stock

-

-

-

-

-

Debt Issuance (Pay Down)

-

-

75.0

25.0

-

Cash from Financing Activ.

( 5.4 )

( 5.4 )

69.6

19.6

( 6.5 )

Change in Cash

18.1

20.1

17.4

( 8.8 )

7.5

Mydeco Stock Price

$ 7.92

$ 3.30

$ 5.25

$ 8.71

$ 10.89

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