Question

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?

2012-2016 Financial Statement Data and Stock Price Data for Mydeco Corp (All data as of fiscal year end; in $ millions) 2012 2014 2016 Income Statement Revenue Cost of Goods Sold 2013 2015 402.5 (185.4) 217.1 366.5 (173.6) 192.9 (67.2) (57.3) 428.2 (202.2) 226.0 507.8 (244.7) 263.1 (101.4) 606.4 (289.6) 316.8 Gross Profit Sales and Marketing Administration Depreciation & Amortization (33.8) 47.6 40.3 60.7 (32.9) 27.8 (9.7) 18.1 53.3 $0.34 80.7 (38.5) 42.2 EBIT 58.2 (35.9) 22.3 (7.8) 14.5 53.3 S0.27 Interest Income (Expense) 14.2 (5.0) 9.2 53.3 $0.17 Pretax Income 8.9 Income Tax Net Income 5.8 53.3 $0.11 27.4 53.3 $0.51 Shares Outstanding (millions) Earnings per Share Balance Sheet Assets Cash Accounts Receivable Inventory 2012 2013 2014 2015 2016 49.3 89.8 31.9 88.5 75.2 30.8 179.2193.7 194.5 77.0 71.8 30.4 94.3 69.8 29.6 102.6 86.5 33.7 222.8 Total Current Assets

Answer 1

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Home nert Page Layout Formulas Data Review View dd-Ins Cut ー E " ゴWrap Text aCopy в 1 프 . Ej- a-Δ. :r,ミ 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Formsat Paste Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard Alignment Number Cells Edting M148 Formula Bar 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 4CASH BUDGET a % REVENUE GROWTH YEAR REVENUE %CHANGE 2012 2013 2014 2015 2016 402.5 366.5-8.94% (0135-0134)/0134 428.2 16.83% (0136-0135)/0135 507.8 18.59% (0137-0136)/0136 606.4 19.42% (0138-0137)/0137 b % NET INCOME GROWTH YEAR NET INCOME % CHANGE 2012 2013 2014 2015 2016 18.1 9.2 14.5 27.4 -67.96% (0143-0142)/0142 58.62% (0144-0143)/0143 57.61% (0145-0144)/0144 88.97% (0146-0145)/0145 45 BV MV ratio VARIANCE BEP, OL FL ratios B-S loss SALES BUDGET DİFF ANALYSIS overhead float | ORDER E -LI 03:13 21-01-2019

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E " ゴWrap Text aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Alignment Number Cells Edting 0156 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 1 | ASH BUDGET C DIFFERENCE IN GROWTH RATES OF NET INCOME & REVENUES DUE TO THE FACT THAT COGS & EXPENSES DO NOT RISE IN SAME PROPROTION AS INCOME FOR EXAMPLE IN YEAR 2013, REVEUE DECREASED BY 8.94% WHERE AS COGS DECRESAED BY (173.6-185.4)/!85.4-6.36% SO IT WILL MAKE CHANGE IN NET INCOME TO RISE/FALL DISPROPORTIONATELY 45 BV MV ratio VARIANCE BEP OL FL ratios B-S loss SALES BUDGET DİFF ANALYSIS overhead float | ORDER E -LI 03:14 21-01-2019