Question
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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