Solution-Firm net income and net cash flow

Firm net income and net cash flow

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Reference no: EM131038482

Butterfly Tractors had $17.50 million in sales last year. Cost of goods sold was $8.70 million, depreciation expense was $2.70 million, interest payment on outstanding debt was $1.70 million, and the firm's tax rate was 30%.

a. What was the firm's net income and net cash flow? (Enter your answers in millions rounded to 2 decimal places.)

b. What would happen to net income and cash flow if depreciation were increased by $1.70 million? (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.)

c. What would be the impact on net income and cash flow if the firm's interest expense were $1.70 million higher. (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.)

Reference no: EM131038482

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Firm net income and net cash flow

Reference no: EM131038482

Reference no: EM131038482

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