See Table 2.5 showing financial statement data and stock price data for Mydeco Corp.

a. What were Mydeco’s gross margins each year?

b. Comparing Mydeco’s gross margin, EBIT margin, and net profit margin in 2012 to 2016, which margins improved?

Table 2.5

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TABLE 2.5 Mydeco Corp. 2012-2016 Income Statement Revenue Cost of Goods Sold Gross Profit Sales and Marketing Administration Depreciation & Amortization EBIT Interest Income (Expense) Pretax Income Income Tax Net Income Shares outstanding (millions) Earnings per share Balance Sheet Assets Cash 2012-2016 Financial Statement Data and Stock Price Data for Mydeco Corp. Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equip. Goodwill & Intangibles Total Assets Liabilities & Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities Long-term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Chg. in Accounts Receivable Chg. in Inventory Chg. in Payables & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Dividends Paid Sale (or purchase) of stock Debt Issuance (Pay Down) Cash from Financing Activities Change in Cash Mydeco Stock Price (All data as of fiscal year end; in $ million) 2013 361.6 (175.4) 186.2 2012 401.9 (192.1) 209.8 (65.0) (61.8) (27.5) 55.5 (32.4) 23.1 (8.1) 15.0 56.8 $0.26 2012 49.4 87.6 33.5 170.5 244.3 365.5 780.3 18.8 7.6 26.4 498.9 525.3 255.0 780.3 2012 15.0 27.5 3.9 (2.9) 1.7 45.2 (26.6) (5.2) (5.2) 13.4 $7.02 (31.8) 6.6 (2.3) 4.3 56.8 $0.08 (64.4) (84.3) (57.1) (59.0) (26.3) (32.5) 38.4 46.7 (32.0) 14.7 2013 68.0 70.6 32.2 170.8 243.3 365.5 779.6 18.8 6.3 25.1 498.9 524 255.6 779.6 2013 4.3 26.3 17.0 1.3 (1.3) 47.6 (23.8) (23.8) (5.2) 2014 (5.2) 18.6 $3.55 429.6 (207.1) 222.5 (5.1) 9.6 56.8 $0.17 2014 91.7 69.3 27.3 188.3 306.1 365.5 859.9 22.4 7.5 29.9 572.2 602.1 257.8 859.9 2014 9.6 32.5 1.3 4.9 4.8 53.1 (97.5) (97.5) (5.2) 73.3 68.1 23.7 $5.86 2015 513.6 (248.3) 265.3 (104.9) (66.9) (38.3) 55.2 (37.0) 18.2 (6.4) 11.8 56.8 $0.21 2015 80.4 77.4 30.2 188.0 349.6 365.5 903.1 27.1 7.7 34.8 597.5 632.3 270.8 903.1 2015 11.8 38.3 (8.1) (2.9) 4.9 44.0 (75.4) (75.4) (5.2) 25.3 20.1 (11.3) $8.33 2016 602.6 (295.8) 306.8 (121.1) (79.8) (40.1) 65.8 (40.9) 24.9 (8.7) 16.2 56.8 $0.29 2016 83.6 84.2 35.8 203.6 347.9 365.5 917.0 30.3 9.4 39.7 597.5 637.2 279.8 917.0 2016 16.2 40.1 (6.8) (5.6) 4.9 48.8 (40.0) (40.0) (5.6) (5.6) 3.2 $11.57