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2013-2014-2015 and 2016
х Data table n 2012-2016 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) Income Statement 2012 2013 2014 2015 Revenue 404.3 363.8 424.6 510.7 Cost of Goods Sold (188.3) (173.8) (206.2) (246.8) Gross Profit 216.0 190.0 218.4 263.9 Sales and Marketing (66.7) (66.4) (82.8) (102.1) Administration (60.6) (59.1) (59.4) (66.4) Depreciation & Amortization (27.3) (27.0) (34.3) (38.4) EBIT 61.4 37.5 41.9 57.0 Interest Income (Expense) (33.7) (329) (32.2) (374) Pretax Income 27.7 4,6 19.6 Income Tax (6.9) (1.2) (2.4) (4.9) Net Income 20.8 3.4 7.3 14.7 Shares Outstanding (millions) 55 55 55 55 Earnings per Share $0.38 $0.06 $0.13 $0.27 Balance Sheet 2012 2013 2014 2015 Assets Cash 48.8 69.3 87.7 80.9 Accounts Receivable 88.6 69.8 69.8 76.9 Inventory 33.7 30.9 28.4 31.7 Total Current Assets 171.1 170.0 185.9 189.5 2016 604.1 (293.4) 310.7 (120.8) (78.5) (38.6) 72.8 (39.4) 33.4 (8.4) 25.0 55 $0.45 2016 9.7 91.7 86.1 35.3 213.1
See Table 25 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $12 million at the end of 2013, and this equipment was depreciated by S4 million per year in 2014, 2015, and 2016. Given Mydeco's tax rate of 25%, what impact would this additional purchase have had on Mydeco's net income in years 2013-2016? (Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances) GE Calculate the new net income below. (Round to one decimal place.) 2013 $ (millions) Year Net Income Additional Depreciation Tax Savings New Net Income $ $ $