Butterfly Tractors had $23.50 million in sales last year. Costof goods sold was $9.90 million, depreciation expense was $3.90million, interest payment on outstanding debt was $2.90 million,and the firm’s tax rate was 21%.
a. What was the firm’s netincome? (Enter your answers in millions rounded to 2decimal places.)
b. What was the firm’s cashflow? (Enter your answers in millions rounded to 2decimal places.)
c. What would happen to net income andcash flow if depreciation were increased by $2.90million? (Enter your numeric answers in millionsrounded to 2 decimal places. Select "unaffected" if the results donot affect the balance.)
f. What would be the impact on cash flowif depreciation was $2.90 million and interest expense was $3.90million? (Enter your numeric answer in millionsrounded to 2 decimal places. Select "unaffected" if the results donot affect the balance.)
Butterfly Tractors had $23.50 million in sales last year. Cost of goods sold was $9.90 million, depreciation expense was
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