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See table showing financial statement data and stock price data for Mydeco Corp. In what year did Mydeco need to reduce its cash reserves? Why
See table showing financial statement data and stock price data for Mydeco Corp.
In what year did Mydeco need to reduce its cash reserves?
Why did Mydeco need to reduce its cash reserves in a year when net income was reasonably high?
Income Statement | 2012 | 2013 | 2014 | 2015 | 2016 | |
Revenue | 404.3 | 363.8 | 424.6 | 510.7 | 604.1 | |
Cost of Goods Sold | (188.3) | (173.8) | (206.2) | (246.8) | (293.4) | |
Gross Profit | 216 | 190 | 218.4 | 263.9 | 310.7 | |
Sales and Marketing | (66.7) | (66.4) | (82.8) | (102.1) | (120.8) | |
Administration | (60.6) | (59.1) | (59.4) | (66.4) | -78.5 | |
Depreciation & Amortization | (27.3) | (27.0) | (34.3) | (38.4) | (38.6) | |
EBIT | 61.4 | 37.5 | 41.9 | 57 | 72.8 | |
Interest Income (Expense) | (33.7) | (32.9) | (32.2) | (37.4) | (39.4) | |
Pretax Income | 27.7 | 4.6 | 9.7 | 19.6 | 33.4 | |
Income Tax | (9.7) | (1.6) | (3.4) | (6.9) | (11.7) | |
Net Income | 18 | 3 | 6.3 | 12.7 | 21.7 | |
Shares outstanding (millions) | 55 | 55 | 55 | 55 | 55 | |
Earnings per share | $0.33 | $0.05 | $0.11 | $0.23 | $0.39 | |
Balance Sheet | 2012 | 2013 | 2014 | 2015 | 2016 | |
Assets | ||||||
Cash | 48.8 | 68.9 | 86.3 | 77.5 | 85 | |
Accounts Receivable | 88.6 | 69.8 | 69.8 | 76.9 | 86.1 | |
Inventory | 33.7 | 30.9 | 28.4 | 31.7 | 35.3 | |
Total Current Assets | 171.1 | 169.6 | 184.5 | 186.1 | 206.4 | |
Net Property, Plant & Equip. | 245.3 | 243.3 | 309 | 345.6 | 347 | |
Goodwill & Intangibles | 361.7 | 361.7 | 361.7 | 361.7 | 361.7 | |
Total Assets | 778.1 | 774.6 | 855.2 | 893.4 | 915.1 | |
Liabilities & Stockholders' Equity | ||||||
Accounts Payable | 18.7 | 17.9 | 22 | 26.8 | 31.7 | |
Accrued Compensation | 6.7 | 6.4 | 7 | 8.1 | 9.7 | |
Total Current Liabilities | 25.4 | 24.3 | 29 | 34.9 | 41.4 | |
Long-term Debt | 500 | 500 | 575 | 600 | 600 | |
Total Liabilities | 525.4 | 524.3 | 604 | 634.9 | 641.4 | |
Stockholders' Equity | 252.7 | 250.3 | 251.2 | 258.5 | 273.7 | |
Total Liabilities & Stockholders' Equity | 778.1 | 774.6 | 855.2 | 893.4 | 915.1 | |
Statement of Cash Flows | 2012 | 2013 | 2014 | 2015 | 2016 | |
Net Income | 18 | 3 | 6.3 | 12.7 | 21.7 | |
Depreciation & Amortization | 27.3 | 27 | 34.3 | 38.4 | 38.6 | |
Chg. in Accounts Receivable | 3.9 | 18.8 | 0 | (7.1) | (9.2) | |
Chg. in Inventory | (2.9) | 2.8 | 2.5 | (3.3) | (3.6) | |
Chg. 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 | |
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 | 25 | - | |
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 | |
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