Question
Award: 18 out of 30.00 points Butterfly Tractors had $20.50 million in sales last year. Cost of goods sold was $9.30 million, depreciation expense was
Award: 18 out of 30.00 points
Butterfly Tractors had $20.50 million in sales last year. Cost of goods sold was $9.30 million, depreciation expense was $3.30 million, interest payment on outstanding debt was $2.30 million, and the firms tax rate was 30%. |
a. | What was the firms net income and net cash flow? (Enter your answers in millions rounded to 2 decimal places.) |
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Net income | $ 3.92 million |
Net cash flow | $ 7.22 million |
net income and net cash flow are the correct answer
b. | What would happen to net income and cash flow if depreciation were increased by $2.30 million? (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.) |
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Net income | decreased by | $ million |
Cash flow | increased by | $ million |
d. | What would be the impact on net income and cash flow if the firms interest expense were $2.30 million higher. (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.) |
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Net income | decreased by | $ million |
Cash flow | decreased by | $ million |
eBook & Resources
eBook: The Income Statement
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