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Butterfly Tractors had $14 million in sales last year. Cost of goods sold was $8 million, depreciation expense was $2 million, interest payment on outstanding

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Butterfly Tractors had $14 million in sales last year. Cost of goods sold was $8 million, depreciation expense was $2 million, interest payment on outstanding debt was $1 million, and the firm's tax rate was 35% a. What were the firm's net income and net cash flow? (Enter your answers in millions rounded to 2 decimal places.) Net income Net cash flow million million b. What would happen to net income and cash flow if depreciation were increased by $1 million? (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.) decreased by increasedby million million Net income Cash flow c. Would you expect the change in income and cash flow to have a positive or negative impact on the firm's stock price? Positive Negative d. What would be the impact on net income if depreciation was $1 million and interest expense was $2 million? Increase Decrease O No change e. What would be the impact on cash if depreciation was $1 million and interest expense was $2 million? Increase Decrease O No change

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