What would happen to net income and cash flow

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Reference no: EM131013346

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 1mil and the firm’s tax rate was 35%. B) What would happen to net income & cash flow if depreciation were increase by 1Mil? C) Would you expect the change of income and cash flow to have a positive or negative impact on the firm's stock price? D) What would impact on the net income if depreciation was 1 mill and interest expensive was 2 million? E) What would be the impact on cash if depreciation was 1 million and interest was 2 million?

Reference no: EM131013346

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