Determine what was the firms net income and net cash flow

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Reference no: EM13329094

Butterfly Tractors had $24.00 million in sales last year. Cost of goods sold was $10.00 million, depreciation expense was $4.00 million, interest payment on outstanding debt was $3.00 million, and the firm's tax rate was 35%.

a. What was the firm's net income and net cash flow?

b. What would happen to net income and cash flow if depreciation were increased by $3.00 million?

c. What would be the impact on net income and cash flow if the firm's interest expense were $3.00 million higher.

Reference no: EM13329094

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