See Table 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?

Income Statement 2012 2013 2014 2015 2016 Revenue 400.6 368.6 422.1 515.4 600.9 Cost of Goods Sold (185.2) (173.5) (204.2) (246.4) (289.8) Gross Profit 215.4 195.1 217.9 269.0 311.1 Sales and Marketing (66.4) (67.0) (83.4) (104.9) (115.8) Administration (60.7) (60.8) (58.8) (64.5) (77.2) Depreciation & Amortization (26.2) (25.1) (33.9) (37.7) (36.9) EBIT 62.1 42.2 41.8 61.9 81.2 Interest Income (Expense) (32.8) (31.9) (32.8) (36.8) (38.6) Pretax Income 29.3 10.3 9.0 25.1 42.6 Income Tax (10.3) (3.6) (3.2) (8.8) (14.9) Net Income 19.0 6.7 5.8 16.3 27.7 Shares Outstanding (millions) 56.5 56.5 56.5 56.5 56.5 Earnings per Share $0.34 $0.12 $0.10 $0.29 $0.49 Balance Sheet 2012 2013 2014 2015 2016 Assets Cash 48.9 71.4 94.3 86.7 103.2 Accounts Receivable 88.1 68.2 68.9 77.2 85.2 Inventory 32.9 30.3 28.1 31.1 33.5 Total Current Assets 169.9 169.9 191.3 195.0 221.9 Net Property, Plant & Equip. 248.9 242.7 306.5 343.6 342.2 Goodwill & Intangibles 365.1 365.1 365.1 365.1 365.1 Total Assets 783.9 777.7 862.9 903.7 929.2 Liabilities & Stockholders' Equity Accounts Payable 18.9 16.1 23.9 25.8 32.8 Accrued Compensation 6.9 6.8 7.9 8.9 10.2 Total Current Liabilities 25.8 22.9 31.8 34.7 43.0 Long-term Debt 495.1 495.1 568.7 595.0 595.0 Total Liabilities 520.9 518.0 600.5 629.7 638.0 Stockholders' Equity 263.0 259.7 262.4 274.0 291.2 Total Liabilities & Stockholders' Equity 783.9 777.7 862.9 903.7 929.2 Statement of Cash Flows 2012 2013 2014 2015 2016 Net Income 19.0 6.7 5.8 16.3 27.7 Depreciation & Amortization 26.2 25.1 33.9 37.7 36.9 Chg. in Accounts Receivable 3.9 19.9 -0.7 (8.3) (8.0) Chg. in Inventory (2.9) 2.6 2.2 (3.0) (2.4) Chg. in Pay. & Accrued Comp. 2.1 (2.9) 8.9 2.9 8.3 Cash from Operations 48.3 51.4 50.1 45.6 62.5 Capital Expenditures (23.7) (23.7) (95.6) (74.3) (39.5) Cash from Investing Activ. (23.7) (23.7) (95.6) (74.3) (39.5) Dividends Paid (5.2) (5.2) (5.2) (5.2) (6.5) Sale (or purchase) of stock - - - - - Debt Issuance (Pay Down) - - 73.6 26.3 - Cash from Financing Activ. (5.2) (5.2) 68.4 21.1 (6.5) Change in Cash 19.4 22.5 22.9 (7.6) 16.5 Mydeco Stock Price $8.17 $3.35 $5.09 $9.43 $12.11