What was the firm net income

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Reference no: EM132020295

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 $1.70million, and the firm’s tax rate was 30%.

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

b. What was the firm’s cash flow? (Enter your answers in millions rounded to 2 decimal places.)

c. What would happen to net income and cash flow if depreciation were increased by $1.70 million? (Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.)

Net Income would be increased, decreased or unaffected by ______million?

Cash flow woould be increased, decreased or unaffected by _______million?

f. What would be the impact on cash flow if depreciation was $1.70 million and interest expense was $2.70 million? (Enter your numeric answer in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.)

Cash flow would be increased, decreased or unaffected by ______million?

Reference no: EM132020295

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