Question

showing financial statement data and stock price data for Mydeco Corp. Suppose? Mydeco's costs and expenses had been the same fraction of revenues in

2013-2016 as they were in 2012.

What would? Mydeco's EPS have been each year in this? case?

Calculate the new EPS for 2013?-2016 ?below:???(Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal? places.)

                      
                      
Income Statement   2012   2013   2014   2015   2016  
Revenue   404.6   361.5   421.4   510.7   608.4  
Cost of Goods Sold   (185.6)   (171.8)   (207.9)   (248.0)   (289.1)  
Gross Profit   219.0   189.7   213.5   262.7   319.3  
Sales and Marketing   (68.0)   (65.0)   (82.6)   (99.3)   (116.0)  
Administration   (60.0)   (57.1)   (58.9)   (67.0)   (76.8)  
Depreciation & Amortization   (27.7)   (28.2)   (35.2)   (40.0)   (39.7)  
EBIT   63.3   39.4   36.8   56.4   86.8  
Interest Income (Expense)   (34.8)   (32.1)   (31.2)   (39.2)   (38.9)  
Pretax Income   28.5   7.3   5.6   17.2   47.9  
Income Tax   (10.0)   (2.6)   (2.0)   (6.0)   (16.8)  
Net Income   18.5   4.7   3.6   11.2   31.1  
Shares outstanding (millions)   55.2   55.2   55.2   55.2   55.2  
Earnings per share   $0.34   $0.09   $0.07   $0.20   $0.56  
Balance Sheet   2012   2013   2014   2015   2016  
Assets                      
Cash   46.9   71.7   82.0   69.2   90.8  
Accounts Receivable   88.7   69.1   71.4   77.2   85.7  
Inventory   33.7   30.9   26.6   33.5   35.7  
Total Current Assets   169.3   171.7   180.0   179.9   212.2  
Net Property, Plant & Equip.   250.1   241.6   308.1   348.5   345.4  
Goodwill & Intangibles   361.1   361.1   361.1   361.1   361.1  
Total Assets   780.5   774.4   849.2   889.5   918.7  
Liabilities & Stockholders' Equity                      
Accounts Payable   20.4   18.8   20.8   25.4   31.8  
Accrued Compensation   6.6   7.2   7.3   8.3   10.2  
Total Current Liabilities   27.0   26.0   28.1   33.7   42.0  
Long-term Debt   504.4   504.4   577.8   602.1   602.1  
Total Liabilities   531.4   530.4   605.9   635.8   644.1  
Stockholders' Equity   249.1   244.0   243.3   253.7   274.6  
Total Liabilities & Stockholders' Equity   780.5   774.4   849.2   889.5   918.7  
Statement of Cash Flows   2012   2013   2014   2015   2013  
Net Income   18.5   4.7   3.6   11.2   2016  
Depreciation & Amortization   27.7   28.2   35.2   40.0   39.7  
Chg. in Accounts Receivable   3.9   19.6   -2.3   (5.8)   (8.5)  
Chg. in Inventory   (2.9)   2.8   4.3   (6.9)   (2.2)  
Chg. in Pay. & Accrued Comp.   2.5   (1.0)   2.1   5.6   8.3  
Cash from Operations   49.7   54.3   42.9   44.1   68.4  
Capital Expenditures   (24.4)   (23.4)   (99.9)   (75.1)   (40.0)  
Cash from Investing Activ.   (24.4)   (23.4)   (99.9)   (75.1)   (40.0)  
Dividends Paid   (6.1)   (6.1)   (6.1)   (6.1)   (6.8)  
Sale (or purchase) of stock   -   -   -   -   -  
Debt Issuance (Pay Down)   -   -   73.4   24.3   -  
Cash from Financing Activ.   (6.1)   (6.1)   67.3   18.2   (6.8)  
Change in Cash   19.2   24.8   10.3   (12.8)   21.6  
Mydeco Stock Price   $7.71   $3.92   $5.49   $8.24   $12.84  

Answer 1

Income Statement		2012	% of revenue	2013	Calculation	2014	2015	2016
Revenue		404.6	1	361.5		421.4	510.7	608.4
Cost of Goods Sold		185.6	45.87%	165.83	361.5*45.87%	193.31	234.27	279.09
Gross Profit		219	54.13%	195.67		228.09	276.43	329.31
Sales and Marketing		68	16.81%	60.76	361.5*16.81%	70.82	85.83	102.25
Administration		60	14.83%	53.61	361.5*14.83%	62.49	75.73	90.22
Depreciation & Amortization		27.7	6.85%	24.75	361.5*6.85%	28.85	34.96	41.65
EBIT		63.3		56.56		65.93	79.90	95.18
Interest Income (Expense)		34.8	8.60%	31.09	361.5*8.60%	36.24	43.93	52.33
Pretax Income		28.5		25.46		29.68	35.97	42.86
Income Tax		10	2.47%	8.93	361.5*2.47%	10.42	12.62	15.04
Net Income		18.5		16.53		19.27	23.35	27.82
Shares outstanding (millions)		55.2		55.2		55.2	55.2	55.2
Earnings per share		0.34		0.30		0.35	0.42	0.50