ee Table 2.5

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showing financial statement data and stock price data for Mydeco Corp.

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

b. Compare Mydeco's gross margin, EBIT margin, and net profit margin in

2015

and

2019.

Which margins improved?

Question content area bottom

Part 1

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

The gross margin for

2015

is

enter your response here%.

(Round to two decimal places.)

Income Statement	2015	2016	2017	2018	2019
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	2015	2016	2017	2018	2019
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	2015	2016	2017	2018	2019
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
Mydeco Stock Price	$7.92	$3.30	$5.25	$8.71	$10.89