Question
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 firms tax rate was 30%. a. What were 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 $2.50 million? (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.) Net income by $ million Cash flow by $ million
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