Mydeco Corp. 2009–2013
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
Income Statement
2009
2010
2011
2012
2013
Revenue
404.3
363.8
424.6
510.7
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose My-deco’s costs and expenses had been the same fraction of revenues in 2010–2013 as they were in 2009. What would My-deco’s EPS have been each year in this case?
Table 2.5
Mydeco Corp. 2009–2013
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
Income Statement
2009
2010
2011
2012
2013
Revenue
404.3
363.8
424.6
510.7
604.1
Cost of Goods Sold
(188.3)
(173.8)
(206.2)
(246.8)
(293.4)
Gross Profit
216.0
190.0
218.4
263.9
310.7
Sales and Marketing
(66.7)
(66.4)
(82.8)
(102.1)
(120.8)
Administration
(60.6)
(59.1)
(59.4)
(66.4)
(78.5)
Depreciation & Amortization
(27.3)
(27.0)
(34.3)
(38.4)
(38.6)
EBIT
61.4
37.5
41.9
57.0
72.8
Interest Income (Expense)
(33.7)
(32.9)
(32.2)
(37.4)
(39.4)
Pretax Income
27.7
4.6
9.7
19.6
33.4
Income Tax
(9.7)
(1.6)
(3.4)
(6.9)
(11.7)
Net Income
18.0
3.0
6.3
12.7
21.7
Shares outstanding (millions)
55.0
55.0
55.0
55.0
55.0
Earnings per share
$0.33
$0.05
$0.11
$0.23
$0.39
Balance Sheet
2009
2010
2011
2012
2013
Assets
Cash
48.8
68.9
86.3
77.5
85
Accounts Receivable
88.6
69.8
69.8
76.9
86.1
Inventory
33.7
30.9
28.4
31.7
35.3
Total Current Assets
171.1
169.6
184.5
186.1
206.4
Net Property, Plant & Equip.
245.3
243.3
309
345.6
347
Goodwill & Intangibles
361.7
361.7
361.7
361.7
361.7
Total Assets
778.1
774.6
855.2
893.4
915.1
Liabilities & Stockholders’ Equity
Accounts Payable
18.7
17.9
22
26.8
31.7
Accrued Compensation
6.7
6.4
7
8.1
9.7
Total Current Liabilities
25.4
24.3
29
34.9
41.4
Long-term Debt
500
500
575
600
600
Total Liabilities
525.4
524.3
604
634.9
641.4
Stockholders’ Equity
252.7
250.3
251.2
258.5
273.7
Total Liabilities & Stockholders’ Equity
778.1
774.6
855.2
893.4
915.1
Statement of Cash Flows
2009
2010
2011
2012
2013
Net Income
18
3
6.3
12.7
21.7
Depreciation & Amortization
27.3
27
34.3
38.4
38.6
Chg. in Accounts Receivable
3.9
18.8
0
-7.1
-9.2
Chg. in Inventory
-2.9
2.8
2.5
-3.3
-3.6
Chg. in Payables & Accrued Comp.
2.2
-1.1
4.7
5.9
6.5
Cash from Operations
48.5
50.5
47.8
46.6
54
Capital Expenditures
(25.0)
(25.0)
(100.0)
(75.0)
(40.0)
Cash from Investing Activities
(25.0)
(25.0)
(100.0)
(75.0)
(40.0)
Dividends Paid
(5.4)
(5.4)
(5.4)
(5.4)
(6.5)
Sale (or purchase) of stock
Debt Issuance (Pay Down)
75.0
25.0
Cash from Financing Activities
(5.4)
(5.4)
69.6
19.6
(6.5)
Change in Cash
18.1
20.1
17.4
(8.8)
7.5
Mydeco Stock Price
$7.92
$3.30
$5.25
$8.71
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
Income Statement
2009
2010
2011
2012
2013
Revenue
404.3
363.8
424.6
510.7
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose My-deco’s costs and expenses had been the same fraction of revenues in 2010–2013 as they were in 2009. What would My-deco’s EPS have been each year in this case?
Table 2.5
Mydeco Corp. 2009–2013
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
(All data as of fiscal year end; in $ million)
Income Statement
2009
2010
2011
2012
2013
Revenue
404.3
363.8
424.6
510.7
604.1
Cost of Goods Sold
(188.3)
(173.8)
(206.2)
(246.8)
(293.4)
Gross Profit
216.0
190.0
218.4
263.9
310.7
Sales and Marketing
(66.7)
(66.4)
(82.8)
(102.1)
(120.8)
Administration
(60.6)
(59.1)
(59.4)
(66.4)
(78.5)
Depreciation & Amortization
(27.3)
(27.0)
(34.3)
(38.4)
(38.6)
EBIT
61.4
37.5
41.9
57.0
72.8
Interest Income (Expense)
(33.7)
(32.9)
(32.2)
(37.4)
(39.4)
Pretax Income
27.7
4.6
9.7
19.6
33.4
Income Tax
(9.7)
(1.6)
(3.4)
(6.9)
(11.7)
Net Income
18.0
3.0
6.3
12.7
21.7
Shares outstanding (millions)
55.0
55.0
55.0
55.0
55.0
Earnings per share
$0.33
$0.05
$0.11
$0.23
$0.39
Balance Sheet
2009
2010
2011
2012
2013
Assets
Cash
48.8
68.9
86.3
77.5
85
Accounts Receivable
88.6
69.8
69.8
76.9
86.1
Inventory
33.7
30.9
28.4
31.7
35.3
Total Current Assets
171.1
169.6
184.5
186.1
206.4
Net Property, Plant & Equip.
245.3
243.3
309
345.6
347
Goodwill & Intangibles
361.7
361.7
361.7
361.7
361.7
Total Assets
778.1
774.6
855.2
893.4
915.1
Liabilities & Stockholders’ Equity
Accounts Payable
18.7
17.9
22
26.8
31.7
Accrued Compensation
6.7
6.4
7
8.1
9.7
Total Current Liabilities
25.4
24.3
29
34.9
41.4
Long-term Debt
500
500
575
600
600
Total Liabilities
525.4
524.3
604
634.9
641.4
Stockholders’ Equity
252.7
250.3
251.2
258.5
273.7
Total Liabilities & Stockholders’ Equity
778.1
774.6
855.2
893.4
915.1
Statement of Cash Flows
2009
2010
2011
2012
2013
Net Income
18
3
6.3
12.7
21.7
Depreciation & Amortization
27.3
27
34.3
38.4
38.6
Chg. in Accounts Receivable
3.9
18.8
0
-7.1
-9.2
Chg. in Inventory
-2.9
2.8
2.5
-3.3
-3.6
Chg. in Payables & Accrued Comp.
2.2
-1.1
4.7
5.9
6.5
Cash from Operations
48.5
50.5
47.8
46.6
54
Capital Expenditures
(25.0)
(25.0)
(100.0)
(75.0)
(40.0)
Cash from Investing Activities
(25.0)
(25.0)
(100.0)
(75.0)
(40.0)
Dividends Paid
(5.4)
(5.4)
(5.4)
(5.4)
(6.5)
Sale (or purchase) of stock
25.0
(5.4)
(5.4)
69.6
19.6
(6.5)
Change in Cash
18.1
20.1
17.4
(8.8)
7.5
Mydeco Stock Price
$7.92
$3.30
$5.25
$8.71
