Consider the financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $12.7 million at the end of 2015 and this equipment was depreciated by $4.2 million per year in 2016, 2017, and 2018. Given Mydeco's tax rate of 35%, what impact would this additional purchase have had on Mydeco's net income in years 2015-2018? (Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances:) Click the icon to view the financial statement and stock price data. Calculate the new net income below. (Round to one decimal place.) (millions) Year 2015 Net Income: S Additional Depreciation $ Tax Savings $ New Net Income $ Data table Income Statement Revenue Cost of Goods Sold Gross Profit 2014 2015 2016 2017 2018 406.6 367.9 423.4 515.1 608.4 (189.0) (175.7) (208.1) (244.4) (291.3) 217.6 192.2 215.3 270.7 317.1 Sales and Marketing (68.2) (65.4) (82.3) (98.0) (118.9) Administration (59.2) (60.6) (58.1) (66.5) (79.8) Depreciation & Amortization (29.0) (26.6) (32.6) (39.2) (38.5) EBIT 61.2 39.6 42.3 67.0 79.9 Interest Income (Expense) (33.2) (31.6) (32.7) (37.5) (40.3) Pretax Income 28.0 8.0 9.6 29.5 39.6 Income Tax (9.8) (2.8) (3.4) (10.3) (13.9) Net Income Shares Outstanding (millions) Earnings per Share 18.2 5.2 6.2 19.2 25.7 55.2 55.2 55.2 55.2 55.2 $0.33 $0.09 $0.11 $0.35 $0.47 Balance Sheet 2014 2015 2016 2017 2018 Assets Cash 46.9 74.1 89.2 90.0 105.6 Accounts Receivable 90.4 69.3 69.9 75.3 85.7 Inventory 33.5 29.3 28.5 32.8 34.1 Total Current Assets 170.8 172.7 187.6 198.1 225.4 Net Property, Plant & Equipment 243.1 243.9 309.6 345.3 346.1 Goodwill & Intangibles 358.1 358.1 358.1 358.1 358.1 Total Assets 772.0 774.7 855.3 901.5 929.6 Liabilities & Stockholders' Equity Accounts Payable 18.5 17.3 22.3 25.4 Accrued Compensation. GA 58 62 76 31.3 01 Print Done - mpie Data table Balance Sheet Assets Cash 2014 2015 2016 2017 2018 46.9 74.1 89.2 90.0 105.6 Accounts Receivable 90.4 69.3 69.9 75.3 85.7 Inventory 33.5 29.3 28.5 32.8 34.1 Total Current Assets 170.8 172.7 187.6 198.1 225.4 Net Property, Plant & Equipment 243.1 243.9 309.6 345.3 346.1 Goodwill & Intangibles 358.1 358.1 358.1 358.1 358.1 Total Assets 772.0 774.7 855.3 901.5 929.6 Liabilities & Stockholders' Equity Accounts Payable 18.5 17.3 22.3 25.4 31.3 Accrued Compensation 6.4 5.8 6.2 7.6 9.1 Total Current Liabilities 24.9 23.1 28.5 33.0 40.4 Long-Term Debt 503.2 503.2 578.9 605.8 605.8 Total Liabilities 528.1 526.3 607.4 638.8 646.2 Stockholders' Equity 243.9 248.4 247.9 262.7 283.4 Total Liabilities & Stockholders' 772.0 774.7 855.3 901.5 929.6 Equity Statement of Cash Flows 2014 2015 2016 2017 2018 Net Income 18.2 5.2 6.2 19.2 25.7 Depreciation & Amortization 29.0 26.6 32.6 39.2 38.5 Change in Accounts Receivable 3.9 21.1 -0.6 (5.4) (10.4) Change in Inventory (2.9) 4.2 0.8 (4.3) (1.3) Change in Pay. & Accrued Comp. 2.7 (1.8) 5.4 4.5 7.4 Cash from Operations 50.9 55.3 44.4 53.2 59.9 Capital Expenditures (24.0) (23.6) (100.5) (74.8) (38.7) Print Done - - X C Data table I Goodwill & Intangibles 358.1 358.1 358.1 358.1 358.1 Total Assets 772.0 774.7 855.3 901.5 929.6 Liabilities & Stockholders' Equity Accounts Payable 18.5 17.3 22.3 25.4 31.3 Accrued Compensation 6.4 5.8 6.2 7.6 9.1 Total Current Liabilities 24.9 23.1 28.5 33.0 40.4 Long-Term Debt 503.2 503.2 578.9 605.8 605.8 Total Liabilities 528.1 526.3 607.4 638.8 646.2 Stockholders' Equity 243.9 248.4 247.9 262.7 283.4 Total Liabilities & Stockholders' 772.0 774.7 855.3 901.5 929.6 Equity Statement of Cash Flows 2014 2015 2016 2017 2018 Net Income 18.2 5.2 6.2 19.2 25.7 Depreciation & Amortization 29.0 26.6 32.6 39.2 38.5 Change in Accounts Receivable 3.9 21.1 -0.6 (5.4) (10.4) Change in Inventory (2.9) 4.2 0.8 (4.3) (1.3) Change in Pay. & Accrued Comp. 2.7 (1.8) 5.4 4.5 7.4 Cash from Operations 50.9 55.3 44.4 53.2 59.9 Capital Expenditures (24.0) (23.6) (100.5) (74.8) (38.7) Cash from Investing Activ. (24.0) (23.6) (100.5) (74.8) (38.7) Dividends Paid (4.5) (4.5) (4.5) (4.5) (5.6) Sale (or Purchase) of Stock Debt Issuance (Pay Down) 75.7 26.9 Cash from Financing Activ. (4.5) (4.5) 71.2 22.4 (5.6) Change in Cash 22.4 27.2 15.1 0.8 15.6 Mydeco Stock Price $6.93 $4.09 $5.41 $8.72 $10.61 Print Done