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

Income Statement	2012	2013	2014	2015	2016
Revenue	397.8	368.4	423.4	512.2	599.8
Cost of Goods Sold	(187.8)	(174.2)	(206.5)	(246.0)	(293.9)
Gross Profit	210	194.2	216.9	266.2	305.9
Sales and Marketing	(65.3)	(66.4)	(81.9)	(105.6)	(120.1)
Administration	(59.7)	(60.0)	(58.7)	(66.4)	-78.9
Depreciation & Amortization	(27.5)	(26.3)	(33.8)	(39.2)	(39.3)
EBIT	57.5	41.5	42.5	55	67.6
Interest Income (Expense)	(32.1)	(32.8)	(31.7)	(35.8)	(38.8)
Pretax Income	25.4	8.7	10.8	19.2	28.8
Income Tax	(8.9)	(3.0)	(3.8)	(6.7)	(10.1)
Net Income	16.5	5.7	7	12.5	18.7
Shares outstanding (millions)	54.1	54.1	54.1	54.1	54.1
Earnings per share	$0.30	$0.11	$0.13	$0.23	$0.35
Balance Sheet	2012	2013	2014	2015	2016
Assets
Cash	49.7	69.7	89.1	79.2	86.1
Accounts Receivable	87.7	69.7	70.8	77.7	86.8
Inventory	34.6	31.4	27.5	32.5	35.6
Total Current Assets	172	170.8	187.4	189.4	208.5
Net Property, Plant & Equip.	244.8	242.6	304.7	347.4	343.5
Goodwill & Intangibles	361.6	361.6	361.6	361.6	361.6
Total Assets	778.4	775	853.7	898.4	913.6
Liabilities & Stockholders' Equity
Accounts Payable	18.9	17.4	22.4	26.6	32.4
Accrued Compensation	6.1	5.9	6.7	8.3	9.4
Total Current Liabilities	25	23.3	29.1	34.9	41.8
Long-term Debt	500.5	500.5	575	600.4	600.4
Total Liabilities	525.5	523.8	604.1	635.3	642.2
Stockholders' Equity	252.9	251.2	249.6	263.1	271.4
Total Liabilities & Stockholders' Equity	778.4	775	853.7	898.4	913.6
Statement of Cash Flows	2012	2013	2014	2015	2016
Net Income	16.5	5.7	7	12.5	18.7
Depreciation & Amortization	27.5	26.3	33.8	39.2	39.3
Chg. in Accounts Receivable	3.5	18	-1.1	(6.9)	(9.1)
Chg. in Inventory	(2.4)	3.2	3.9	(5.0)	(3.1)
Chg. in Pay. & Accrued Comp.	2.1	(1.7)	5.8	5.8	6.9
Cash from Operations	47.2	51.5	49.4	45.6	52.7
Capital Expenditures	(24.0)	(26.2)	(99.2)	(75.6)	(39.3)
Cash from Investing Activ.	(24.0)	(26.2)	(99.2)	(75.6)	(39.3)
Dividends Paid	(5.3)	(5.3)	(5.3)	(5.3)	(6.5)
Sale (or purchase) of stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	74.5	25.4	-
Cash from Financing Activ.	(5.3)	(5.3)	69.2	20.1	(6.5)
Change in Cash	17.9	20	19.4	(9.9)	6.9
Mydeco Stock Price	$8.43	$2.58	$4.71	$9.67	$11.44

a. In what year was Mydeco's net income the lowest?

b. In what year did Mydeco need to reduce its cash reserves?

c. Why did Mydeco need to reduce its cash reserves in a year when net income was reasonably high?

a. In what year was Mydeco's net income the lowest?(Select from the drop-down menus.)

In

2014

2012

2013

2015

2016

(Net income was

$12.5 million

$18.7 million

$7.0 million

$16.5 million

$5.7 million

).

b. In what year did Mydeco need to reduce its cash reserves?(Select from the drop-down menus.)

In

2012

2013

2014

2015

2016

(Cash was reduced from

$49.7 million

$86.1 million

$69.7 million

$89.1 million

$79.2 million

to

$86.1 million

$49.7 million

$69.7 million

$79.2 million

$89.1 million

)

c. Why did Mydeco need to reduce its cash reserves in a year when net income was reasonably high?(Select from the drop-down menus.)

Mydeco needed to reduce cash (it also issued debt) to pay for large

increases in inventory

capital expenditures

dividends to shareholders

in

2012 and 2013

2013 and 2014

2014 and 2015

2015 and 2016

. In addition, even though net income was reasonably high, cash from operations

decreased

increased

to the lowest amount in the five year period due to

increases

decreases

in inventory and accounts receivable.