See Table 2.5

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showing financial statement data and stock price data for Mydeco Corp.a. By what percentage did Mydeco's revenues grow each year from

2016

to

2019?

b. By what percentage did net income grow each year?c. Why might the growth rates of revenues and net income differ?

Income Statement	2015	2016	2017	2018	2019
Revenue	405.9	365.6	423.2	508.5	602.3
Cost of Goods Sold	(185.1)	(177.6)	(205.5)	(251.7)	(292.5)
Gross Profit	220.8	188	217.7	256.8	309.8
Sales and Marketing	(65.0)	(67.2)	(83.2)	(98.2)	(124.7)
Administration	(60.9)	(58.0)	(58.7)	(67.2)	(79.0)
Depreciation & Amortization	(29.1)	(25.5)	(35.2)	(37.1)	(36.9)
EBIT	65.8	37.3	40.6	54.3	69.2
Interest Income (Expense)	(32.8)	(34.6)	(31.3)	(36.7)	(39.2)
Pretax Income	33	2.7	9.3	17.6	30
Income Tax	(11.6)	(0.9)	(3.3)	(6.2)	(10.5)
Net Income	21.4	1.8	6	11.4	19.5
Shares Outstanding (millions)	55.7	55.7	55.7	55.7	55.7
Earnings per Share	$0.38	$0.03	$0.11	$0.20	$0.35
Balance Sheet	2015	2016	2017	2018	2019
Assets
Cash	50.2	69.7	83.2	72	77.4
Accounts Receivable	89.6	70.5	69.3	78.1	86.7
Inventory	33.7	29.2	27.8	32.6	35.9
Total Current Assets	173.5	169.4	180.3	182.7	200
Net Property, Plant & Equip.	240.4	244.6	306.4	344.1	347.8
Goodwill & Intangibles	364.4	364.4	364.4	364.4	364.4
Total Assets	778.3	778.4	851.1	891.2	912.2
Liabilities & Stockholders' Equity
Accounts Payable	18.7	18.9	21.9	28.3	33.5
Accrued Compensation	7.3	5.5	6.9	8.8	9.9
Total Current Liabilities	26	24.4	28.8	37.1	43.4
Long-term Debt	499.6	499.6	575	600.8	600.8
Total Liabilities	525.6	524	603.8	637.9	644.2
Stockholders' Equity	252.7	254.4	247.3	253.3	268
Total Liabilities & Stockholders' Equity	778.3	778.4	851.1	891.2	912.2
Statement of Cash Flows	2015	2016	2017	2018	2019
Net Income	21.4	1.8	6	11.4	19.5
Depreciation & Amortization	29.1	25.5	35.2	37.1	36.9
Chg. in Accounts Receivable	3.9	19.1	1.2	(8.8)	(8.6)
Chg. in Inventory	(2.9)	4.5	1.4	(4.8)	(3.3)
Chg. in Pay. & Accrued Comp.	1.8	(1.6)	4.4	8.3	6.3
Cash from Operations	53.3	49.3	48.2	43.2	50.8
Capital Expenditures	(23.2)	(24.1)	(104.4)	(74.5)	(39.1)
Cash from Investing Activ.	(23.2)	(24.1)	(104.4)	(74.5)	(39.1)
Dividends Paid	(5.7)	(5.7)	(5.7)	(5.7)	(6.3)
Sale (or purchase) of stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	75.4	25.8	-
Cash from Financing Activ.	(5.7)	(5.7)	69.7	20.1	(6.3)
Change in Cash	24.4	19.5	13.5	(11.2)	5.4
Mydeco Stock Price	$8.71	$3.05	$6.02	$7.71	$12.83