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In: Finance

Week1 10, Showing financial statement data and stock price data for Mydeco Corp. a. By how...

Week1 10,

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

a. By how much did Mydeco increase its debt from 2012to 2016??

b. What was? Mydeco's EBITDA/Interest coverage ratio in 2012and 2016??

Did its coverage ratio ever fall below? 2.00?

c. ?Overall, did? Mydeco's ability to meet its interest payments improve or decline over this? period?

a. By how much did Mydeco increase its debt from 2012to 2016?? (Select from the? drop-down menu.)

Mydeco increased its debt by $99.1million from 2012to 2016.



Income Statement	2012	2013	2014	2015	2016
Revenue	402,4	363,7	427,4	510,9	601,1
Cost of Goods Sold	(189.7)	(174.3)	(202.6)	(245.7)	(291.7)
Gross Profit	212,7	189,4	224,8	265,2	309,4
Sales and Marketing	(67.0)	(67.4)	(83.1)	(103.4)	(123.0)
Administration	(59.6)	(60.3)	(59.7)	(66.7)	(79.4)
Depreciation & Amortization	(25.9)	(28.4)	(34.8)	(39.4)	(37.9)
EBIT	60,2	33,3	47,2	55,7	69,1
Interest Income (Expense)	(35.2)	(31.7)	(32.9)	(37.0)	(38.0)
Pretax Income	25	1,6	14,3	18,7	31,1
Income Tax	(8.8)	(0.6)	(5.0)	(6.5)	(10.9)
Net Income	16,2	1	9,3	12,2	20,2
Shares outstanding (millions)	55	55	55	55	55
Earnings per share	$0.29	$0.02	$0.17	$0.22	$0.37
Balance Sheet	2012	2013	2014	2015	2016
Assets
Cash	49,2	67,4	92,5	89,2	91
Accounts Receivable	90,4	71,7	70,7	75,2	86,1
Inventory	34,7	32,6	28,3	29,8	35,7
Total Current Assets	174,3	171,7	191,5	194,2	212,8
Net Property, Plant & Equip.	247,7	239,4	306,6	341,5	350,8
Goodwill & Intangibles	366,4	366,4	366,4	366,4	366,4
Total Assets	788,4	777,5	864,5	902,1	930
Liabilities & Stockholders' Equity
Accounts Payable	17,8	16,6	20,7	26,3	31,3
Accrued Compensation	7,1	5,7	6,3	7,2	8,8
Total Current Liabilities	24,9	22,3	27	33,5	40,1
Long-term Debt	497,1	497,1	570,5	596,2	596,2
Total Liabilities	522	519,4	597,5	629,7	636,3
Stockholders' Equity	266,4	258,1	267	272,4	293,7
Total Liabilities & Stockholders' Equity	788,4	777,5	864,5	902,1	930
Statement of Cash Flows	2012	2013	2014	2015	2016
Net Income	16,2	1	9,3	12,2	20,2
Depreciation & Amortization	25,9	28,4	34,8	39,4	37,9
Chg. in Accounts Receivable	3,9	18,7	1	(4.5)	(10.9)
Chg. in Inventory	(2.9)	2,1	4,3	(1.5)	(5.9)
Chg. in Pay. & Accrued Comp.	1,8	(2.6)	4,7	6,5	6,6
Cash from Operations	44,9	47,6	54,1	52,1	47,9
Capital Expenditures	(26.8)	(24.5)	(97.5)	(76.2)	(40.0)
Cash from Investing Activ.	(26.8)	(24.5)	(97.5)	(76.2)	(40.0)
Dividends Paid	(4.9)	(4.9)	(4.9)	(4.9)	(6.1)
Sale (or purchase) of stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	73,4	25,7	-
Cash from Financing Activ.	(4.9)	(4.9)	68,5	20,8	(6.1)
Change in Cash	13,2	18,2	25,1	(3.3)	1,8
Mydeco Stock Price	$8.07	$3.36	$5.19	$9.11	$11.68

Week1, 8

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

a.How did? Mydeco's accounts receivable days change over this? period?

b.How did? Mydeco's inventory days change over this? period?

c. Based on your? analysis, has Mydeco improved its management of its working capital during this time? period?

(Note: Use a? 365-day year.)

a.How did? Mydeco's accounts receivable days change over this? period?

The accounts receivable days for 2012is ----------days. ? (Round to one decimal? place.)



Income Statement	2012	2013	2014	2015	2016
Revenue	397,2	363,6	421,9	509,2	605,8
Cost of Goods Sold	(187.0)	(174.6)	(203.2)	(242.9)	(294.2)
Gross Profit	210,2	189	218,7	266,3	311,6
Sales and Marketing	(67.3)	(66.6)	(80.9)	(104.0)	(123.1)
Administration	(59.0)	(59.1)	(60.4)	(64.7)	(76.8)
Depreciation & Amortization	(26.8)	(25.3)	(35.5)	(39.9)	(40.3)
EBIT	57,1	38	41,9	57,7	71,4
Interest Income (Expense)	(33.4)	(32.1)	(31.4)	(38.0)	(39.1)
Pretax Income	23,7	5,9	10,5	19,7	32,3
Income Tax	(8.3)	(2.1)	(3.7)	(6.9)	(11.3)
Net Income	15,4	3,8	6,8	12,8	21
Shares outstanding (millions)	53,4	53,4	53,4	53,4	53,4
Earnings per share	$0.29	$0.07	$0.13	$0.24	$0.39
Balance Sheet	2012	2013	2014	2015	2016
Assets
Cash	47,9	64,9	82,6	75,8	88,6
Accounts Receivable	86,8	69,9	70,6	76,6	84,1
Inventory	32,3	30,4	28,6	29,9	33,7
Total Current Assets	167	165,2	181,8	182,3	206,4
Net Property, Plant & Equip.	242,1	240,1	311,3	349,7	348,7
Goodwill & Intangibles	364,8	364,8	364,8	364,8	364,8
Total Assets	773,9	770,1	857,9	896,8	919,9
Liabilities & Stockholders' Equity
Accounts Payable	18,8	17,6	21,1	26,6	32,7
Accrued Compensation	6,6	6,9	6,8	8,1	10,1
Total Current Liabilities	25,4	24,5	27,9	34,7	42,8
Long-term Debt	504,7	504,7	579	602,4	602,4
Total Liabilities	530,1	529,2	606,9	637,1	645,2
Stockholders' Equity	243,8	240,9	251	259,7	274,7
Total Liabilities & Stockholders' Equity	773,9	770,1	857,9	896,8	919,9
Statement of Cash Flows	2012	2013	2014	2015	2016
Net Income	15,4	3,8	6,8	12,8	21
Depreciation & Amortization	26,8	25,3	35,5	39,9	40,3
Chg. in Accounts Receivable	3,9	16,9	-0,7	(6.0)	(7.5)
Chg. in Inventory	(2.9)	1,9	1,8	(1.3)	(3.8)
Chg. in Pay. & Accrued Comp.	2,8	(0.9)	3,4	6,8	8,1
Cash from Operations	46	47	46,8	52,2	58,1
Capital Expenditures	(23.8)	(24.0)	(97.4)	(76.4)	(39.0)
Cash from Investing Activ.	(23.8)	(24.0)	(97.4)	(76.4)	(39.0)
Dividends Paid	(6.0)	(6.0)	(6.0)	(6.0)	(6.3)
Sale (or purchase) of stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	74,3	23,4	-
Cash from Financing Activ.	(6.0)	(6.0)	68,3	17,4	(6.3)
Change in Cash	16,2	17	17,7	(6.8)	12,8
Mydeco Stock Price	$6.96	$2.57	$5.97	$8.91	$9.06

Expert Solution

jeff jeffy answered 2 years ago

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