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Problem 3-14 Income versus Cash Flow (LO3)Butterfly Tractors had $20.50 million in sales last year....

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Accounting

Problem 3-14 Income versus Cash Flow (LO3)

Butterfly Tractors had $20.50 million in sales last year. Cost of goods sold was $9.30 million, depreciation expense was $3.30 million, interest payment on outstanding debt was $2.30 million, and the firm's tax rate was 21%.

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

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

c.What would happen to net income and cash flow if depreciation were increased by $2.30 million?(Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.)

f.What would be the impact on cash flow if depreciation was $2.30 million and interest expense was $3.30 million?(Enter your numeric answer in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.)

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4 909 points E'BOOk Hir'lt Print RETET'EHC 98 Problem 3-14 Income versus Cash Flow (L03) Butterfly Tractors had $20.50 million in sales last year. Cost of goods sold was $9.30 million, depreciation expense was $3.30 million, interest payment on outstanding debt was $2.30 million, and the firm's tax rate was 21%. a. What was the rm's net income? (Enter your answers in millions rounded to 2 decimal places.) b. What was the firm's cash flow? (Enter your answers in millions rounded to 2 decimal places.) c. What would happen to net income and cash ow if depreciation were increased by $2.30 million? (Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.) f. What would be the impact on cash ow if depreciation was $2.30 million and interest expense was $3.30 million? (Enter your numeric answer in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.) Net income Net cash ow 1:. Net Income would be Cash ow wouid be f. Cash ow wouid be

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