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Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million, depreciation expense was $3.50 million, interest payment on outstanding
Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million, depreciation expense was $3.50 million, interest payment on outstanding debt was $2.50 million, and the firm's tax rate was 30% a. What were the firm's net income and net cash flow? (Enter your answers in millions rounded to 2 decimal places.) $ million Net income Net cash flow million b. What would happen to net income and cash flow if depreciation were increased by $2.50 million? (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.) Net income Cash flow (Click to sele v by (Click to sele v by million million c. Would you expect the change in income and cash flow to have a positive or negative impact on the firm's stock price? O Positive O Negative d. What would be the impact on net income if depreciation was $2.50 million and interest expense was $3.50 million? Increase Decrease O No change e. What would be the impact on cash if depreciation was $2.50 million and interest expense was $3.50 million? O Increase Decrease No change
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