Question

2016 608.1 (293.9) 314.2 (125.7) (78.5) (37.4) 72.6 (40.7) 31.9 (11.2) 20.7 54.7 $0.38 2016 2012 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 401.1 365.8 420. 9 514.6 Cost of Goods Sold (184.7) (174.2) (205.8) (244.4) Gross Profit 216.4 191.6 215.1 270.2 Sales and Marketing (67.7) (66.1) (83.7) (104.7) Administration (61.3) (59.4) (57.5) (65.0) Depreciation & Amortization (25.4) (28.9) (33.3) (39.8) EBIT 62.0 37.2 40.6 60.7 Interest Income (Expense) (34.5) (32.8) (32.0) (37.9) Pretax Income 27.5 4.4 8.6 22.8 Income Tax (9.6) (1.5) (3.0) (8.0) Net Income 17.9 2.9 5.6 14.8 Shares Outstanding (millions) 54.7 54.7 54.7 54.7 Earnings per Share $0.33 $0.05 $0.10 $0.27 Balance Sheet 2013 2014 2015 Assets Cash 48.1 73.2 82.0 76.2 Accounts Receivable 89.9 67.9 71.3 78.5 Inventory 35.7 32.6 27.9 32.6 Total Current Assets 173.7 173.7 181.2 187.3 Net Property, Plant & Equipment 245.6 239.5 308.5 345.7 Goodwill & Intangibles 363.5 363.5 363.5 363.5 Total Assets 782.8 776.7 853.2 896.5 Liabilities & Stockholders' Equity Accounts Payable 18.6 19.6 22.2 26.2 Accrued Compensation 7.2 6.5 6.3 7.3 Total Current Liabilities 25.8 26.1 28.5 33.5 Long-Term Debt 499.1 499.1 574.4 600.8 Total Liabilities 524.9 525.2 602.9 634.3 Stockholders' Equity 257.9 251.5 250.3 262.2 Total Liabilities & Stockholders' 782.8 776.7 853.2 896.5 Equity Statement of Cash Flows 2012 2013 2014 2015 Net Income 17.9 2.9 5.6 14.8 Depreciation & Amortization 25.4 28.9 33.3 39.8 Change in Accounts Receivable 3.9 22.0 - 3.4 (7.2) Change in Inventory (2.9) 3.1 4.7 (4.7) Change in Pay. & Accrued Comp. 0.3 2.4 5.0 Cash from Operations 47.2 57.2 42.6 47.7 Capital Expenditures (23.1) (25.9) (102.9) (73.7) Cash from Investing Activ. (23.1) (25.9) (102.9) (73.7) Dividends Paid (6.2) (6.2) (6.2) (6.2) Sale for purchase of Stack 84.2 87.6 34.2 206.0 351.7 363.5 921.2 31.2 9.5 40.7 600.8 641.5 279.7 921.2 2016 20.7 37.4 (9.1) (1.6) 2.9 72 54.6 (39.8) (39.8) (6.8)

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?

Answer 1

Details	2012	2013	YOY movement	2014	YOY movement	2015	YOY movement	2016	YOY movement
Revenue	401.1	365.8	-8.80%	420.9	15.06%	514.6	22.26%	608.1	18.17%
Expenses	383.2	362.9	-5.30%	415.3	14.44%	499.8	20.35%	587.4	17.53%
Cost of goods sold	184.7	174.2	-5.68%	205.8	18.14%	244.4	18.76%	293.9	20.25%
Sales and marketing	67.7	66.1	-2.36%	83.7	26.63%	104.7	25.09%	125.7	20.06%
Administration	61.3	59.4	-3.10%	57.5	-3.20%	65	13.04%	78.5	20.77%
Depreciation & Amortization	25.4	28.9	13.78%	33.3	15.22%	39.8	19.52%	37.4	-6.03%
Interest Income / Expense	34.5	32.8	-4.93%	32	-2.44%	37.9	18.44%	40.7	7.39%
Income tax	9.6	1.5	-84.38%	3	100.00%	8	166.67%	11.2	40.00%
Net Income	17.9	2.9	-83.80%	5.6	93.10%	14.8	164.29%	20.7	39.86%
YOY movement columns indicates the growth rates, where positive rate implicates growth and negative rate implicates de-growth