Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. problem 3-14 income versus cash flow (lo3) butterf

Problem 3-14 Income versus Cash Flow (LO3) Butterfly Tractors had $15.00 million in sales last year....

90.2K

Verified Solution

Question

Finance

Problem 3-14 Income versus Cash Flow (LO3)

Butterfly Tractors had $15.00 million in sales last year. Costof goods sold was $8.20 million, depreciation expense was $2.20million, interest payment on outstanding debt was $1.20million, andthe firm’s tax rate was 35%.

a. What was the firm’s net income?(Enter your answers in millions rounded to 2 decimalplaces.)

b. What was the firm’s cash flow?(Enter your answers in millions rounded to 2 decimalplaces.)

c. What would happen to net income and cash flow if depreciationwere increased by $1.20 million? (Enter your numericanswers in millions rounded to 2 decimal places. Select\"unaffected\" if the results do not affect thebalance.)


f. What would be the impact on cash flow if depreciation was $1.20million and interest expense was $2.20 million? (Enter yournumeric answer in millions rounded to 2 decimal places. Select\"unaffected\" if the results do not affect thebalance.)

Answer & Explanation Solved by verified expert
3.8 Ratings (733 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Which of the following three inferences are valid? (There is no need to explain your answers.) (a)...

Physics
1.2K views

An ideal gas undergoes a process as shown in the figure At state C 5Vc...

Physics
1.2K views

A ray of light passing through equilateral triangular glass prism from air undergoes minimum deviation...

Physics
1.2K views

A chain is held on a frictionless table wi th 1 5th of its lengt...

Geometry
1.2K views

Acircle has in weer of 32 sa What is the exact circum of the cirule...

Basic Math
1.2K views

Post exercise VO2 in ml min 301 Post exercise VO2 in 1 min 0 301...

Basic Math
1.2K views

300 people are lined up outside of Disneyland, and all enter by 8:15 am. By...

Algebra
1.2K views

Graph the following function by starting with the graph of 2 y x and using...

Algebra
1.2K views

Find the perimeter of each polygon a 11 in b 43 in 4 8 m...

Accounting
1.2K views

#12 A company applies overhead at a rate of 160% of direct labor cost. Actual...

Accounting
1.2K views

Problem 1. Adjusting Entries (18 marks in toal. 3 marks for each adjusting entry) The...

Finance
1.2K views

Level 2 Chapter 9 - Section 1 - Exercise 12 Paul Curcio earns $8.25 per...