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Problem 314 Income versus Cash Flow (LO3) Butterfly Tractors had $14 million in sales last year. Cost of goods sold was $8 million, depreciation expense

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Problem 314 Income versus Cash Flow (LO3) Butterfly Tractors had $14 million in sales last year. Cost of goods sold was $8 million, depreciation expense was $2 million, interest payment on outstanding debt was $1 million, and the firm's tax rate was 21%. Required: a. What was the firm's net income? (Enter your answer in millions rounded to 2 decimal places.) b. What was the firm's cash flow? (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 $1 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 $1 million and interest expense was $2 million? (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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