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Butterfly Tractors had 15.50 million in sales last year. Cost of goods sold was 8.30 million, drepreciation expense was 2.30 million, interest payment on outstanding
Butterfly Tractors had 15.50 million in sales last year. Cost of goods sold was 8.30 million, drepreciation expense was 2.30 million, interest payment on outstanding debt was 1.30 million, and the firm's tax rate was 30%. a). What was the firm's net income and net cash flow? (Please answer in millions rounded to 2 decimal places.) Net income $__________Million Net cash flow ______________ Million b). What would happen to net income and cash flow if depreciation were increased by $1.30 million? (Input all amounts as positive values. Answers in millions rounded to 2 decimal places.) Net income ?________ by $_______ million Cash flow ________________by $___________million c). What would be the impact on net income and cash flow if the firm's interest expense were $1.30 million higher. (Input all amounts as positive values. Enter answers in millions rounded to 2 decimal places) net income _________ by$_________million; Cash flow __________by $______________million
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