Butterfly Tractors had $15.50 million in sales last year. Cost of goods sold was $8.30 million, depreciation expense was $2.30 million, interest payment on outstanding debt was $1.30 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.)

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. Enter your answers in millions rounded to 2 decimal places.)

Net Income	Increase or Decrease	$_________million
Cash Flow	Increase or Decrease	$_________million

c.

What would be the impact on net income and cash flow if the firms interest expense were $1.30 million higher. (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.)

Net Income	Increase or Decrease	$____________million
Cash Flow	Increase or Decrease	$____________million