See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $12.1 million at the end of 2016, and this equipment was depreciated by $4 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.) 2016 2017 2018 2019 S (millions) Year Net Income Additional Depreciation Tax Savings New Net Income $ $ $ $ $ $ $ S S s $ S 2015 2016 2017 2018 2019 408.3 359.3 426.3 508.9 606.6 (1875) (171.1) (205.81 (246.5) (293.5) 220.8 188.2 220.5 262.4 3131 (64.8) (64.6) (83.8) (989) (1215) (61.6) (59.6) (602) (67.0) (77.4) (28.1) (25.0) (36.1) (37.6) (39.0) 66.3 40.4 58.9 75.2 (337) (31.5) (32.7) (36.3) (38.9) 32.6 7.5 7.7 22.6 36.3 (11.4) (2.6) (2.7) (7.9) (12.7) 21.2 4.9 5 14.7 23.6 55.1 55.1 55.1 55.1 55.1 $0.38 $0.09 $0.09 $0.27 $0.43 2015 2016 2017 2018 2019 39 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 & Equip. 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 Chg. in Accounts Receivable Chg. in Inventory Chg in Pay. & Accrued Comp: Cash from Operations Capital Expenditures Cash from Investing Activ Dividends Paid Sale for purchase) of stock Debt Issuance (Pay Down) Cash from Financing Activ Change in Cash Mydeco Stock Price 47.7 87.4 34.3 169.4 243.9 362.1 775.4 66.5 70.6 29.3 166.4 2442 362.1 772.7 92.1 69.7 26.5 188.3 305.3 362.1 855.7 80.9 78.3 30.2 189.4 3418 362.1 893.3 89.8 86.7 35.2 211.7 348.2 3621 922 17.3 16.6 23.6 27.5 30.5 7.4 6.6 6.8 7.4 9.5 24,7 23.2 30.4 34.9 40 499.2 499.2 576 600.5 600.5 523.9 522.4 606.4 635.4 6405 251.5 250.3 249.3 257.9 2815 775.4 772.7 855.7 893.3 922 2015 2016 2017 2018 2019 21.2 4.9 5 14.7 23.6 28.1 25 36.1 37.6 39 3.9 16.8 09 (8.6) (8.4) (2.9) 5 2.8 (3.7) (5.0) 1.3 (1.5) 7.2 4.5 5.1 51.6 50.2 52 44.5 54.3 (25.1) (25.2) (97.0) 74.0) (396) (25.1) (252) (97.0) (74.0) 39.6) (62) (6.2) (6.2) (6.2) (5.8) 76,8 (6.2) (6.2) 20.3 $2.95 24.5 70.6 18.3 5.8) 18.8 25.6 (112) $6.22 58 67 89 $8.39