Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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b) by what percentage did net income grow each year?
c) for example, revenues (increased or declined) in 2013 by 10.02%, however, cost of goods sold (declined or increased) by 7.70%
Transcribed Image Text: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 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?
a. By what percentage did Mydeco's revenues grow each year from 2013 to 20167
The revenues growth for year 2013 is - 10.02 %. (Round to two decimal places.)
The revenues growth for year 2014 is 16.71 %. (Round to two decimal places.)
The revenues growth for year 2015 is 20.28 %. (Round to two decimal places.)
The revenues growth for year 2016 is 18.29%. (Round to two decimal places.)
b. By what percentage did net income grow each year
The net income growth for year 2013 is %. (Round to two decimal places.)
The net income growth for year 2014 is %. (Round to two decimal places.)
The net income growth for year 2015 is %. (Round to two decimal places.)
The net income growth for year 2016 is %. (Round to two decimal places.)
c. Why might the growth rates of revenues and net income differ? (Select from the drop-down menus.)
different rates than revenues. For example, revenues
in 2013 by 10.02%, however, cost of goods sold
V by 7.70%.
Net income growth rate differs from revenue growth rate because cost of goods sold and other expenses can move
Transcribed Image Text:This test: 6 point(s)
Data table
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
2016
Revenue
404.3
363.8
424.6
510.7
604.1
Cost of Goods Sold
(188.3)
(173.8)
(206.2)
(246.8)
263.9
(293.4)
Gross Profit
216.0
190.0
218.4
310.7
Sales and Marketing
(66.7)
(60.6)
(27.3)
61.4
(66.4)
(59.1)
(27.0)
(82.8)
(59.4)
(34.3)
(102.1)
(66.4)
(38.4)
(120.8)
(78.5)
(38.6)
Administration
Depreciation & Amortization
EBIT
37.5
41.9
57.0
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
(6.9)
(1.2)
(2.4)
(4.9)
(8.4)
Net Income
20.8
3.4
7.3
14.7
25.0
55
55
55
55
55
Shares Outstanding (millions)
Earnings per Share
$0.38
$0.06
$0.13
$0.27
$0.45
2012
2013
2014
2015
2016
Balance Sheet
Assets
80.9
91.7
48.8
69.3
87.7
Cash
76.9
86.1
88.6
69.8
69.8
Accounts Receivable
35.3
30.9
28.4
31.7
33.7
Inventory
185.9
189.5
213.1
171.1
170.0
Total Current Assets
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