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Problem 3-14 Income versus Cash Flow (LO3) Butterfly Tractors had $21.00 million in sales last year. Cost of goods sold was $9.40 million, depreciation expense

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Problem 3-14 Income versus Cash Flow (LO3) Butterfly Tractors had $21.00 million in sales last year. Cost of goods sold was $9.40 million, depreciation expense was $3.40 million, interest payment on outstanding debt was $2,40 million, and the firm's tax rate was 21%. a. What was the firm's net income? Note: Enter your answer in millions rounded to 2 decimal places. b. What was the firm's cash flow? Note: Enter your answer in millions rounded to 2 decimal places. c. What would happen to net income and cash flow if depreciation were increased by $2.40 million? Note: Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" If the results do not affect the balance. d. Would you expect the change in depreciation to have a positive or negative impact on the firm's stock price? e. What would be the impact on net income if depreciation was $1 million and interest expense was $2 million? f. What would be the impact on cash flow if depreciation was $2.40 million and interest expense was $3.40 million? Note: Enter your numeric answer in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance

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