What were the firms net income and net cash flow

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Reference no: EM13866794

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 35%.

a. what were the firm's net income and net cash flow?

b. what would happen to net income and cach flow if depreciation were increased by 1 million.

c. would you expect the change in income and cash flow to have a positive or negative impact on the firm's stock price?

d. what would be the impact on net income if depreciation was 1 million and interest expense was 2 million?

e. what would be the impact on cash if depreciation was 1 million and interest expense was 2 million?

Reference no: EM13866794

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