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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 $1 million and the firm

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 $1 million, and the firm%u2019s tax rate was 35%

 

b.

What would happen to net income and cash flow if depreciation were increased by $1 million? (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.)

 

     
Net income (Click to select) decreased increased by $ million
Cash flow (Click to select) decreased increased by $ million

 

d.

What would be the impact on net income and cash flow if the firm%u2019s interest expense were $1 million higher. (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places.)

 

     
Net income (Click to select) decreased increased by $ million
Cash flow (Click to select) decreased increased by $ million

May 10 2020 View more View Less

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