2016 2019 606.3 (292.9) 313.4 (124.8) (77.2) (38.5) 72.9 (402) 32.7 (11.4) 21.3 54.1 $0.39 2019 2015-2019 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) Income Statement 2015 2017 2018 Revenue 404.9 360.4 427.4 513.5 Cost of Goods Sold (1915) (173.1) (206.7) (246.4) Gross Profit 213.4 187.3 220.7 267.1 Sales and Marketing (65.1) (64.7) (84.3) (103.6) Administration (59.6) (59.3) (60.7) (68.3) Depreciation & Amortization (26.6) (28.3) (32.8) (37.1) EBIT 62.1 35.0 42.9 58.1 Interest Income (Expense) (32.0) (32.3) (33.1) (37.6) Pretax Income 30.1 2.7 9.8 20.5 Income Tax (10.5) (0.9) (3.4) (7.2) Net Income 19.6 1.8 6.4 13.3 Shares Outstanding (millions) 54.1 54.1 54.1 54.1 Earnings per Share $0.36 $0.03 $0.12 $0.25 Balance Sheet 2015 2016 2017 2018 Assets Cash 47.1 68.5 80.1 68.4 Accounts Receivable 90.2 69.4 68.6 76.8 Inventory 32.4 302 29.8 33.2 Total Current Assets 169.7 168.1 178.5 178.4 Net Property, Plant & Equipment 245.1 2422 311.7 346.6 Goodwill & Intangibles 360.6 360.6 360.6 360.6 Total Assets 775.4 770.9 850.8 885.6 Liabilities & Stockholders' Equity Accounts Payable 18.2 19.4 20.5 25.4 Accrued Compensation 6.3 5.8 6.3 7.5 Total Current Liabilities 24.5 25 2 26.8 32.9 Long-Term Debt 498.8 498.8 573.3 597.0 Total Liabilities 523.3 524.0 600.1 629.9 Stockholders' Equity 252.1 246.9 250.7 255.7 Total Liabilities & Stockholders' Equity 775.4 770.9 850.8 885.6 Statement of Cash Flows 2015 2016 2017 2018 Net Income 19.6 1.8 6.4 13.3 Depreciation & Amortization 26.6 28.3 32.8 Change in Accounts Receivable 3.9 20.8 0.8 (8.2) Change in Inventory (2.9) 2.2 0.4 (3.4) Change in Pay. & Accrued Comp. 2.5 0.7 1.6 6.1 Cash from Operations 49.7 53.8 42.0 44.9 Capital Expenditures (23.2) (26.9) (99.4) (74.8) Cash from Investing Activ. (23.2) (26.9) (99.4) (74.8) Dividends Paid (5.5) (5.5) (5.5) (5.5) Sale (or Purchase) of Stock Debt Issuance (Pay Down) 74.5 23.7 Cash from Financing Activ. (5.5) (5.5) 69.0 18.2 Change in Cash 21.0 21.4 11.6 (11.7) Mydeco Stock Price $7.84 $4.16 $5.86 $8.25 77.6 85.3 36.4 199.3 348.8 360.6 908.7 32.5 9.7 422 597.0 6392 269.5 908.7 2019 21.3 38.5 (8.5) (3.2) 9.3 57.4 (41.6) (41.6) (6.6) 37.1 (6.6) 9.2 $10.65 See Table 2.5 5 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $12.7 million at the end of 2016, and this equipment was depreciated by $4.2 million per year in 2017, 2018, and 2019. Given Mydeco's tax rate of 35%, what impact would this additional purchase have had on Mydeco's net income in years 2016-2019? (Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances.) Calculate the new net income below: (Round to one decimal place.) (millions) Year 2016 Net Income Additional Depreciation $ Tax Savings $ New Net Income $