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Butterfly Tractors had $17.00 million in sales last year. Cost of goods sold was $8.60 million,...

Butterfly Tractors had $17.00 million in sales last year. Cost of goods sold was $8.60 million, depreciation expense was $2.60 million, interest payment on outstanding debt was $1.60million, and the firm’s tax rate was 35%.

A. What would happen to net income and cash flow if depreciation were increased by $1.60 million? (Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.)

Net income would be by million
Cash flow would be by million

B.. What would be the impact on cash flow if depreciation was $1.60 million and interest expense was $2.60 million? (Enter your numeric answer in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.)

cash flow would be: by million
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