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What would be the impact on cash flow

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Problem - Income versus Cash Flow - Butterfly Tractors had $20.50 million in sales last year. Cost of goods sold was $9.30 million, depreciation expense was $3.30 million, interest payment on outstanding debt was $2.30 million, and the firm's tax rate was 21%.

Required -

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 $2.30 million?

d. What would be the impact on cash flow if depreciation was $2.30 million and interest expense was 3.30 million?

Reference no: EM133032829

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