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Butterfly Tractors had $23.00 million in sales last year. Cost of goods sold was $9.80 million, depreciation expense was $3.80 million, interest payment on outstanding
Butterfly Tractors had $23.00 million in sales last year. Cost of goods sold was $9.80 million, depreciation expense was $3.80 million, interest payment on outstanding debt was $2.80 million, and the firm's tax rate was 21% a. What was the firm's net income? (Enter your answers in millions rounded to 2 decimal places.) b. What was the firm's cash flow? (Enter your answers in millions rounded to 2 decimal places.) c. What would happen to net income and cash flow if depreciation were increased by $2.80 million? (Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.) f. What would be the impact on cash flow if depreciation was $2.80 million and interest expense was $3.80 million? (Enter your numeric answer in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.) a. 5.21 million Net income Net cash flow $ $ b. 9.01 million C. Net income would be decreased S 0.41 million by mi och flwho Fincreden milli B -................. answers in millions rounded to 2 decimal places. Select "unaffected" if the results f. What would be the impact on cash flow if depreciation was $2.80 million and intere your numeric answer in millions rounded to 2 decimal places. Select "unaffected" balance.) ok a. Net income b. Net cash flow Net income would be Cash flow would be 5.21 million 9.01 million $ c. decreased $ by by 0.41 million million increased decreased f. Cash flow would be by million ces
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