Consider the financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $11.6 million at the end of 2015 and this equipment was depreciated by $3.9 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 Additional Depreciation $ Tax Savings New Net Income $ $ $ 2014 400.3 (189.7) 210.6 (66.4) (60.3) (27.0) 56.9 (34.5) 22.4 (7.8) 14.6 53.1 $0.27 2014 2015 359.2 (173.8) 185.4 (64.9) (58.0) (25.6) 36.9 (31.9) Income Statement Revenue Cost of Goods Sold Gross Profit Sales and Marketing Administration Depreciation & Amortization EBIT Interest Income (Expense) Pretax Income Income Tax Net Income Shares Outstanding (millions) Earnings per Share Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equipment Goodwill & Intangibles 2016 428.5 (204.8) 223.7 (82.5) (59.8) (33.4) 48.0 (31.5) 16.5 (5.8) 10.7 53.1 $0.20 2016 2017 506.7 (246.7) 260.0 (98.5) (67.3) (37.0) 57.2 (39.3) 17.9 (6.3) 11.6 53.1 $0.22 2017 2018 606.1 (290.8) 315.3 (119.2) (78.5) (37.3) 80.3 (40.3) 40.0 (14.0) 26.0 53.1 $0.49 2018 5.0 (1.8) 3.2 53.1 $0.06 2015 48.1 90.1 33.7 171.9 246.5 366.6 TA 69.5 70.7 30.2 170.4 246.7 366.6 90.1 69.2 29.8 189.1 311.2 366.6 78.8 77.1 30.2 186.1 344.8 366.6 Ae 90.6 87.7 35.7 214.0 344.9 366.6 TA DAR Ane 366.6 785.0 366.6 783.7 366.6 866.9 366.6 897.5 366.6 925.5 17.3 6.2 23.5 501.9 525,4 259.6 785.0 16.3 5.5 21.8 501.9 523.7 260.0 783.7 22.8 7.9 30.7 575.2 605.9 261.0 866.9 26.3 7.9 34.2 600.4 634.6 262.9 897.5 32.8 10.5 43.3 600.4 643.7 281.8 925.5 Goodwill & Intangibles Total Assets Liabilities & Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Change in Accounts Receivable Change in Inventory Change in Pay. & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activ. Dividends Paid Sale (or Purchase) of Stock Debt Issuance (Pay Down) 2016 2014 14.6 27.0 3.9 (2.9) 1.7 44.3 (23.7) (23.7) (5.5) 2015 3.2 25.6 19.4 3.5 (1.7) 50.0 (23.1) (23.1) (5.5) 10.7 33.4 1.5 0.4 8.9 54.9 (102.1) (102.1) (5.5) 2017 11.6 37.0 (7.9) (0.4) 3.5 43.8 (74.8) (74.8) (5.5) 2018 26.0 37.3 (10.6) (5.5) 9.1 56.3 (38.7) (38.7) (5.8) - 73.3 25.2 TU. 20. 6.2 23.5 501.9 525.4 259.6 785.0 5.5 21.8 501.9 523.7 260.0 783.7 2.U 7.9 30.7 575.2 605.9 261.0 866.9 7.9 34.2 600.4 634.6 262.9 897.5 10.5 43.3 600.4 643.7 281.8 925.5 MUCOT ayavio Accrued Compensation Total Current Liabilities Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Change in Accounts Receivable Change in Inventory Change in Pay. & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activ. Dividends Paid Sale (or Purchase) of Stock Debt Issuance (Pay Down) Cash from Financing Activ. Change in Cash Mydeco Stock Price 2014 14.6 27.0 3.9 (2.9) 1.7 44.3 (23.7) (23.7) (5.5) 2015 3.2 25.6 19.4 3.5 (1.7) 50.0 (23.1) (23.1) (5.5) 2016 10.7 33.4 1.5 0.4 8.9 54.9 (1021) (102.1) (5.5) 2017 11.6 37.0 (7.9) (0.4) 3.5 43.8 (74.8) (74.8) (5.5) 2018 26.0 37.3 (10.6) (5.5) 9.1 56.3 (38.7) (38.7) (5.8) (5.5) 15.1 $7.21 (5.5) 21.4 $2.36 73.3 67.8 20.6 $6.11 25.2 19.7 (11.3) $9.55 (5.8) 11.8 $11.93