Seo Toblo 25 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for 5125 million at the end of 2016, and this equipment was depreciated by 54.2 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 2017 2010 2019 Not Income 5 $ Additional Depreciation $ $ S $ Tax Savings S $ $ $ New Net Income $ S $ 5 2019 2015-2019 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) 2015 Income Statement 2016 2017 2018 Revenue 407.7 368.7 4242 513.9 Cost of Goods Sold (183.4) (173.0) (203.2) (249.7) Gross Profit 224.3 195.7 221.0 2642 Sales and Marketing (68.5) (66.2) (81.2) (105.7) Administration (61.0) (607) (57.9) (68.3) Depreciation & Amortization (28.0) (26.8) (34.9) (36.6) EBIT 66.8 42.0 47.0 53.6 (34.5) (33.5) (323) (35.9) Pretax Income 32.3 8.5 14.7 17.7 Income Tax (11.3) (5.1) (6.2) Net Income 21.0 5.5 9.6 11.5 Shares Outstanding (millions) 54.8 54.8 54.8 54.8 Earnings per Share $0.38 $0.10 $0.18 $0.21 Balance Sheet 2015 2016 2017 2018 Assets Cash 49.4 70.9 96.0 79.4 Accounts Receivable 87.3 69.2 69.4 78.6 12 20 607.9 (296.2) 311.7 (123.5) (80.1) (38.9) 69.2 (39.7) 29.5 (10.3) 19.2 Interest Income (Expense) (3.0) 54.8 $0.35 2019 88.8 84.9 99n 7. E ZTU T9.2 54.8 $0.38 2015 54.8 $0.10 2016 54.8 $0.18 2017 54.8 $0.21 2018 54.8 $0.35 2019 49.4 88.8 87.3 96.0 69.4 27.6 84.9 33.9 37.2 70.9 69.2 30.7 170.8 245.8 361.5 79.4 78.6 33.2 191.2 342.1 361.5 193.0 306.6 170.6 245.9 361.5 778.0 210.9 348.2 361.5 "TEL TCOITTE Shares Outstanding (millions) Earnings per Share Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equipment 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 361.5 778.1 861.1 894.8 920.6 27.9 21.3 6.5 33.1 10.4 8.1 17.4 6.2 23.6 502.3 525.9 252.1 17,5 5.7 23.2 502.3 27.8 578.2 36.0 601.7 43.5 601.7 525.5 606.0 637.7 257.1 645.2 275.4 252.6 255.1 861.1 778.0 2015 21.0 778.1 2016 894.8 2018 920.6 2019 2017 5.5 9.6 19.2 11.5 36.6 28.0 26.8 34.9 38.9 17.5 21.3 27.9 17.4 33.1 6.2 6.5 10.4 5.7 8.1 23.6 23.2 502.3 27.8 578.2 36.0 601.7 43.5 601.7 502.3 525.9 525.5 606.0 637.7 645.2 275.4 255.1 257.1 252.1 252.6 778.1 778.0 861.1 894.8 920.6 2019 2015 2016 2017 2018 9.6 11.5 21.0 19.2 38.9 34.9 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) Cash from Financing Activ. Change in Cash Mydeco Stock Price 28.0 3.9 (2.9) 1.6 5.5 26.8 18.1 3.2 (0.4) 53.2 (26.5) (26.5) (5.2) -0.2 3.1 4.6 36.6 (9.2) (5.6) 8.2 52.0 51.6 (24.5) (24.5) (5.2) (6.3) (4.0) 7.5 55.3 (40.3) (40.3) (5.6) 41.5 (76.4) (76.4) (5.2) (97.6) (97.6) (5.2) 75.9 23.5 (5.2) 21.9 $7.73 (5.2) 21.5 $4.11 70.7 25.1 $4.59 18.3 (16.6) $9.22 (5.6) 9.4 $10.62
