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Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million,...
Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million, depreciation expense was $3.50 million, interest payment on outstanding debt was $2.50 million, and the firm’s tax rate was 30%.
a. What would be the impact on net income and cash flow if the firm’s interest expense were $2.50 million higher. (Input all amounts as positive values. Enter your answers in millions rounded to 2 decimal places. For example, for $3.92 million, enter "3.92", not "3920000")
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jeff jeffy answered 14 hours agoRelated Solutions
Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million,...
Butterfly Tractors had $21.50 million in sales last year. Cost
of goods sold was $9.50 million, depreciation expense was $3.50
million, interest payment on outstanding debt was $2.50 million,
and the firm’s tax rate was 30%.
a.
What was the firm’s net income and net cash flow? (Enter
your answers in millions rounded to 2 decimal places. For example,
for $3.92 million, enter "3.92", not "3920000")
Net income
$ million
Net cash flow
$ million
b.
What would happen to net income...
Butterfly Tractors had $21.50 million in sales last year. Cost of goods sold was $9.50 million,...
Butterfly Tractors had $21.50 million in sales last year. Cost
of goods sold was $9.50 million, depreciation expense was $3.50
million, interest payment on outstanding debt was $2.50 million,
and the firm’s tax rate was 30%.
a. What was the firm’s net income and net cash flow? (Enter your
answers in millions rounded to 2 decimal places. For example, for
$3.92 million, enter "3.92", not "3920000") Net income $ million
Net cash flow $ million
b. What would happen to...
Butterfly Tractors had $17.50 million in sales last year. Cost of goods sold was $8.70 million,...
Butterfly Tractors had $17.50 million in sales last year. Cost
of goods sold was $8.70 million, depreciation expense was $2.70
million, interest payment on outstanding debt was $1.70million, and
the firm’s tax rate was 30%.
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...
Butterfly Tractors had $15.00 million in sales last year. Cost of goods sold was $8.20 million,...
Butterfly Tractors had $15.00 million in sales last year. Cost
of goods sold was $8.20 million, depreciation expense was $2.20
million, interest payment on outstanding debt was $1.20 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...
Butterfly Tractors had $18.00 million in sales last year. Costof goods sold was $8.80 million,...
Butterfly Tractors had $18.00 million in sales last year. Cost
of goods sold was $8.80 million, depreciation expense was $2.80
million, interest payment on outstanding debt was $1.80 million,
and the firm’s tax rate was 21%.a. What was the firm’s net income? 3.63
millionb. What was the firm’s cash flow? 6.43
millionc. What would happen to net income and cash
flow if depreciation were increased by $1.80 million?(Enter your numeric answers in millions rounded to 2
decimal places. Select "unaffected"...
Premium Excavators had $14 million in sales last year. Cost of goods sold was $8 million,...
Premium Excavators had $14 million in sales last year. Cost of
goods sold was $8 million, depreciation expense was $2 million,
interest payments on outstanding debt was $1 million, and the
firm’s tax rate was 21%.
What was the firm’s net income?
What was the firm’s cash flow?
What would happen to net income and cash flow if depreciation
were increased by $1 million?
Would you expect the change in depreciation o have a positive
or negative impact on the...
Problem 3-14 Income versus Cash Flow (LO3) Butterfly Tractors had $15.00 million in sales last year....
Problem 3-14 Income versus Cash Flow (LO3)
Butterfly Tractors had $15.00 million in sales last year. Cost
of goods sold was $8.20 million, depreciation expense was $2.20
million, interest payment on outstanding debt was $1.20million, and
the firm’s tax rate was 35%.
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...
Eagle Corporation had $10 Million in Sales last year. Cost of goods sold were $6 Million,...
Eagle Corporation had $10 Million in Sales last year. Cost of
goods sold were $6 Million, depreciation expense was $1 Million,
interest payment on outstanding debt was $2 Million, and the firm’s
tax rate is 35%. What was Eagle Corporation’s Net Income (after
tax)?
What was Eagle Corporation’s Net Cash Flow? (1 point) What would
happen to Net Income and Cash Flow if Depreciation increased by $1
Million?
What would happen to Net Income and Cash Flow is the
Depreciation...
Last year, Carriage House Corporation had sales of $18 million and costs of goods sold of...
Last year, Carriage House Corporation had sales of $18 million
and costs of goods sold of $3 million. Operating expenses amounted
to $2,500,000. The firm had $8 million in 6.5% bonds outstanding.
The firm had $830,000 in depreciation expense. Also, Carriage House
sold 1,250 shares of Textron Corporation stock for $150 per share.
Carriage House had purchased the shares for $110 per share two
years ago. Carriage House also sold land for $2.8 million that it
had purchased earlier for...
Williams & Sons last year reported sales of $17 million,cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $17 million,
cost of goods sold (COGS) of $12 and an inventory turnover ratio of
2. The company is now adopting a new inventory system. If the new
system is able to reduce the firm's inventory level and increase
the firm's inventory turnover ratio to 3 while maintaining the same
level of sales and COGS, how much cash will be freed up? Do not
round intermediate calculations. Round your answer to the...
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