See Table 2.5

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

a.By what percentage didMydeco's revenues grow each year from

2016

to

2019?

b. By what percentage did net income grow eachyear?

c. Why might the growth rates of revenues and net incomediffer?

Table 2.5

Income Statement	2015	2016	2017	2018	2019
Revenue	404.1	367.7	425.1	511.8	602.3
Cost of Goods Sold	(187.4)	(173.6)	(206.5)	(251.3)	(289.1)
Gross Profit	216.7	194.1	218.6	260.5	313.2
Sales and Marketing	(65.3)	(66.3)	(83.5)	(98.4)	(115.8)
Administration	(61.3)	(58.7)	(57.5)	(64.6)	(78.0)
Depreciation & Amortization	(27.4)	(25.7)	(33.2)	(39.9)	(38.9)
EBIT	62.7	43.4	44.4	57.6	80.5
Interest Income (Expense)	(35.3)	(34.2)	(32.7)	(37.4)	(40.0)
Pretax Income	27.4	9.2	11.7	20.2	40.5
Income Tax	(9.6)	(3.2)	(4.1)	(7.1)	(14.2)
Net Income	17.8	6	7.6	13.1	26.3
Shares Outstanding (millions)	53.2	53.2	53.2	53.2	53.2
Earnings per Share	$0.33	$0.11	$0.14	$0.25	$0.49
Balance Sheet	2015	2016	2017	2018	2019
Assets
Cash	48.9	76.9	84.4	78	92.7
Accounts Receivable	88.9	68.1	71.5	78.5	85.3
Inventory	33.8	29.1	26.5	32.8	34.6
Total Current Assets	171.6	174.1	182.4	189.3	212.6
Net Property, Plant & Equip.	243.4	245.3	308.3	340.8	350.7
Goodwill & Intangibles	365.8	365.8	365.8	365.8	365.8
Total Assets	780.8	785.2	856.5	895.9	929.1
Liabilities & Stockholders' Equity
Accounts Payable	18.8	18.9	20.8	26.9	31.7
Accrued Compensation	5.9	6.7	7.1	8.5	9.3
Total Current Liabilities	24.7	25.6	27.9	35.4	41
Long-term Debt	499.4	499.4	574.3	599.7	599.7
Total Liabilities	524.1	525	602.2	635.1	640.7
Stockholders' Equity	256.7	260.2	254.3	260.8	288.4
Total Liabilities & Stockholders' Equity	780.8	785.2	856.5	895.9	929.1
Statement of Cash Flows	2015	2016	2017	2018	2019
Net Income	17.8	6	7.6	13.1	26.3
Depreciation & Amortization	27.4	25.7	33.2	39.9	38.9
Chg. in Accounts Receivable	3.9	20.8	-3.4	(7.0)	(6.8)
Chg. in Inventory	(2.9)	4.7	2.6	(6.3)	(1.8)
Chg. in Payables & Accrued Comp.	2.3	0.9	2.3	7.5	5.6
Cash from Operations	48.5	58.1	42.3	47.2	62.2
Capital Expenditures	(23.8)	(24.5)	(104.1)	(73.4)	(41.6)
Cash from Investing Activities	(23.8)	(24.5)	(104.1)	(73.4)	(41.6)
Dividends Paid	(5.6)	(5.6)	(5.6)	(5.6)	(5.9)
Sale (or purchase) of stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	74.9	25.4	-
Cash from Financing Activities	(5.6)	(5.6)	69.3	19.8	(5.9)
Change in Cash	19.1	28	7.5	(6.4)	14.7
Mydeco Stock Price	$6.93	$4.25	$6.14	$8.69	$10.68