See Table 2.5 showing financial statement data and stock price data for My-deco Corp. Use the data

QUESTION

See Table 2.5 showing financial statement data and stock price data for My-deco Corp. Use the data from the balance sheet and cash flow statement in 2009 to determine the following: a. How much cash did My-deco have at the end of 2008? b. What were My-decos accounts receivable and inventory at the end of 2008? c. What were My-decos total liabilities at the end of 2008? d. Assuming goodwill and intangibles were equal in 2008 and 2009, what was My-decos net property, plant, and equipment at the end of 2008? Table 2.5 Mydeco Corp. 20092013 (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 $10.89
a) Cash balance at end of 2008: = Cash balance at end of 2009-Change in cash balance during 209 = $48.8-$18.8 = $30 b) Accounts receivable at the end of 2008: = Accounts receivable at the end 2009+Decrease in accounts receivable during 2009 = $88.6+$3.9 = $92.5 Inventory at the end of 2008: = Inventory at the end 2009-Increase in inventory during 2009 = $33.7-$2.9 = $30.8 c) Total

s at the end of 2008: = Liabilities at the end of 2009-Increase in accruals during 2009 = $525.4 -$2.2 = $523.2 d) Net property, plant and equipment at of 2008: = Net property, plant and equipment at end of 2009+Depreciaon and amortization = $245.3+$27.3 = $272.6

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