$2019-2023$ Financial Statement Data and Stock Price Data for Mydeco Corp.

$($All data as of fiscal year end $ in millions$)$

Income Statement $20192020202120222023$

Revenue $404\mathrm{.}3363\mathrm{.}8424\mathrm{.}6510\mathrm{.}7604\mathrm{.}1$

Cost of Goods Sold $-188\mathrm{.}3-173\mathrm{.}8-206\mathrm{.}2-246\mathrm{.}8-293\mathrm{.}4$

Gross Profit $216\mathrm{.}0190\mathrm{.}0218\mathrm{.}4263\mathrm{.}9310\mathrm{.}7$

Sales and Marketing $-66\mathrm{.}7-66\mathrm{.}4-82\mathrm{.}8-102\mathrm{.}1-120\mathrm{.}8$

Administration $-60\mathrm{.}6-59\mathrm{.}1-59\mathrm{.}4-66\mathrm{.}4-78\mathrm{.}5$

Depreciation & Amortization $-27\mathrm{.}3-27\mathrm{.}0-34\mathrm{.}3-38\mathrm{.}4-38\mathrm{.}6$

EBIT $61\mathrm{.}437\mathrm{.}541\mathrm{.}957\mathrm{.}072\mathrm{.}8$

Interest Income $($Expense$)-33\mathrm{.}7-32\mathrm{.}9-32\mathrm{.}2-37\mathrm{.}4-39\mathrm{.}4$

Pretax Income $27\mathrm{.}74\mathrm{.}69\mathrm{.}719\mathrm{.}633\mathrm{.}4$

Income Tax $-9\mathrm{.}7-1\mathrm{.}6-3\mathrm{.}4-6\mathrm{.}9-11\mathrm{.}7$

Net Income $18\mathrm{.}03\mathrm{.}06\mathrm{.}312\mathrm{.}721\mathrm{.}7$

Shares Outstanding $($millions$)55\mathrm{.}055\mathrm{.}055\mathrm{.}055\mathrm{.}055\mathrm{.}0$

Earnings per Share $($$$)0\mathrm{.}330\mathrm{.}050\mathrm{.}110\mathrm{.}230\mathrm{.}39$

Balance Sheet $20192020202120222023$

Assets

Cash $48\mathrm{.}868\mathrm{.}986\mathrm{.}377\mathrm{.}585\mathrm{.}0$

Accounts Receivable $88\mathrm{.}669\mathrm{.}869\mathrm{.}876\mathrm{.}986\mathrm{.}1$

Inventory $33\mathrm{.}730\mathrm{.}928\mathrm{.}431\mathrm{.}735\mathrm{.}3$

Total Current Assets $171\mathrm{.}1169\mathrm{.}6184\mathrm{.}5186\mathrm{.}1206\mathrm{.}4$

Net Property, Plant & Equipment $245\mathrm{.}3243\mathrm{.}3309\mathrm{.}0345\mathrm{.}6347\mathrm{.}0$

Goodwill & Intangibles $361\mathrm{.}7361\mathrm{.}7361\mathrm{.}7361\mathrm{.}7361\mathrm{.}7$

Total Assets $778\mathrm{.}1774\mathrm{.}6855\mathrm{.}2893\mathrm{.}4915\mathrm{.}1$

Liabilities & Stockholders' Equity

Accounts Payable $18\mathrm{.}717\mathrm{.}922\mathrm{.}026\mathrm{.}831\mathrm{.}7$

Accrued Compensation $6\mathrm{.}76\mathrm{.}47\mathrm{.}08\mathrm{.}19\mathrm{.}7$

Current Liabilities $25\mathrm{.}424\mathrm{.}329\mathrm{.}034\mathrm{.}941\mathrm{.}4$

Long$-$term Debt $500\mathrm{.}0500\mathrm{.}0575\mathrm{.}0600\mathrm{.}0600\mathrm{.}0$

Total Liabilities $525\mathrm{.}4524\mathrm{.}3604\mathrm{.}0634\mathrm{.}9641\mathrm{.}4$

Stockholders' Equity $252\mathrm{.}7250\mathrm{.}3251\mathrm{.}2258\mathrm{.}5273\mathrm{.}7$

Total Liabilities & Stockholders' Equity $778\mathrm{.}1774\mathrm{.}6855\mathrm{.}2893\mathrm{.}4915\mathrm{.}1$

Statement of Cash Flows $20192020202120222023$

Net Income $18\mathrm{.}03\mathrm{.}06\mathrm{.}312\mathrm{.}721\mathrm{.}7$

Depreciation & Amortization $27\mathrm{.}327\mathrm{.}034\mathrm{.}338\mathrm{.}438\mathrm{.}6$

Change in Accounts Receivable $3\mathrm{.}918\mathrm{.}80\mathrm{.}0-7\mathrm{.}1-9\mathrm{.}2$

Change in Inventory $-2\mathrm{.}92\mathrm{.}82\mathrm{.}5-3\mathrm{.}3-3\mathrm{.}6$

Change in Payables & Accrued Comp. $2\mathrm{.}2-1\mathrm{.}14\mathrm{.}75\mathrm{.}96\mathrm{.}5$

Cash from Operations $48\mathrm{.}550\mathrm{.}547\mathrm{.}846\mathrm{.}654\mathrm{.}0$

Capital Expenditures $-25\mathrm{.}0-25\mathrm{.}0-100\mathrm{.}0-75\mathrm{.}0-40\mathrm{.}0$

Cash from Investing Activities $-25\mathrm{.}0-25\mathrm{.}0-100\mathrm{.}0-75\mathrm{.}0-40\mathrm{.}0$

Dividends Paid $-5\mathrm{.}4-5\mathrm{.}4-5\mathrm{.}4-5\mathrm{.}4-6\mathrm{.}5$

Sale $($or Purchase$)$ of Stock $00000$

Debt Issuance $($Pay Down$)0075\mathrm{.}025\mathrm{.}00$

Cash from Financing Activ. $-5\mathrm{.}4-5\mathrm{.}469\mathrm{.}619\mathrm{.}6-6\mathrm{.}5$

Change in Cash $18\mathrm{.}120\mathrm{.}117\mathrm{.}4-8\mathrm{.}87\mathrm{.}5$

Mydeco Stock Price $($$$)7\mathrm{.}923\mathrm{.}305\mathrm{.}258\mathrm{.}7110\mathrm{.}89$

Showing financial statement data and stock price data Mydeco Corp. Suppose Mydeco had purchased additional equipment for $$12\mathrm{.}0$ million at the end of $2020$ and this equipment was depreciated by $$4\mathrm{.}0$ million per year in $2021,2022$ and $2023.$ Given Mydeco's tax rate of $35\%,$ what impact would this additional purchase have had on Mydeco's net income in years $2020$ to $2023?$

$($millions$)2020202120222023$

Net Income $$\_\_$ $$\_\_$ $$\_\_$ $$\_\_$

Additional Depreciation $$\_\_$ $$\_\_$ $$\_\_$ $$\_\_$

Tax Savings $$\_\_$ $$\_\_$ $$\_\_$ $$\_\_$

New Net Income $$\_\_$ $$\_\_$ $$\_\_$ $$\_\_$