Question
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
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 1mil and the firms tax rate was 35%. B) what would happen to net income & cash flow if depreication were increase by 1Mil? C) would you expect thr change of income and cash flow to have a postive or negative impact on the firm's stock price? D) what would impact on the net incomeif depreciation was 1 mill and intrest expensive was 2 million? E) what would be the impact on cash if depreciation was 1 million and intrest was 2 million?
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