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Why is this wrong, please correct me wrong, thanks Butterfly Tractors had $14 million in sales last year. Cost of goods sold was $8 million,
Why is this wrong, please correct me wrong, thanks
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.) Answer is complete but not entirely correct. a. Net income b. Net cash flow C. Net income would be Cash flow would be Cash flow would be $ 2.37 million $ 4.37 million decreased by $ increased by $ decreased by $ 1.58 X million 4.58 million 3.37 million fStep by Step Solution
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