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Last year, Martin Inc. reported $11,040 of sales, $4,708 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds
Last year, Martin Inc. reported $11,040 of sales, $4,708 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds outstanding that carry a 7.6% interest rate, and its federal-plus-state income tax rate was 35%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $579. By how much will the depreciation change cause:
(1) the firm's net income to change? $ (2) its operating cash flow to change? $
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