What would be the impact on net income and cash flow if the

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Butterfly Tractors had $15.50 million in sales last year. Cost of goods sold was $8.30 million, depreciation expense was $2.30 million, interest payment on outstanding debt was $1.30 million, and the firm's tax rate was 30%. a. What was the firm's net income and net cash flow? Net income $ million Net cash flow $ million b. What would happen to net income and cash flow if depreciation were increased by $1.30 million? Net income Decreases by $ million Cash flow Increases by $ million c. What would be the impact on net income and cash flow if the firm's interest expense were $1.30 million higher. Net income Decreases by $ million Cash flow Decreases by $ million.

Reference no: EM13481618

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