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What would be the impact on cash flow

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Question - Butterfly Tractors had $20.00 million in sales last year. Cost of goods sold was $9.20 million, depreciation expense was $3.20 million, interest payment on outstanding debt was $2.20 million, and the firm's tax rate was 21%.

a. What was the firm's net income?

b. What was the firm's cash flow?

c. What would happen to net income and cash flow if depreciation were increased by $2.20 million?

d. What would be the impact on cash flow if depreciation was $2.20 million and interest expense was $3.20 million?

Reference no: EM132948911

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