Question

Butterfly Tractors had $23.00 million in sales last year. Cost of goods sold was $9.80 million,...

Butterfly Tractors had $23.00 million in sales last year. Cost of goods sold was $9.80 million, depreciation expense was $3.80 million, interest payment on outstanding debt was $2.80 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 $2.80 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 $2.80 million and interest expense was $3.80 million? (Enter your numeric answer in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

De Bano dx 07:33 ENG 201 2020 23 CB90 X - BV for BX BW BY BZ CA CB I c o E CF CF 880 881 882 883 884 885 886 887 888 889 890dx 07:33 ENG 201 2020 23 CAO27 X - BV for BX BW BY BZ CA CB A c o E CF CF 903 904 905 906 907 909 910 911 912 913 914 915 916dx 07:33 ENG 201 2020 23 CA952 - X B W BV BX BY BZ CA CB cc o E CF CF 925 926 927 928 929 930 931 SALES COGS DEPRECIATION EBI

Add a comment
Know the answer?
Add Answer to:
Butterfly Tractors had $23.00 million in sales last year. Cost of goods sold was $9.80 million,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Butterfly Tractors had $15.50 million in sales last year. Cost of goods sold was $8.30 million,...

    Butterfly Tractors had $15.50 million in sales last year. Cost of goods sold was $8.30 million, depreciation expense was $2.30 million, interest payment on outstanding debt was $1.30 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...

  • Butterfly Tractors had $20.50 million in sales last year. Cost of goods sold was $9.30 million,...

    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 $2.30million, 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.) Net income million b. What was the firm's cash flow? (Enter your answers in millions rounded to 2 decimal places.) Net cash flow million C. What would happen...

  • 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 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...

  • Construct a balance sheet for Sophie's Sofas given the following data, including shareholders' equity. = =...

    Construct a balance sheet for Sophie's Sofas given the following data, including shareholders' equity. = = Cash balances Inventory of sofas Store and property Accounts receivable Accounts payable Long-term debt $ 15,000 $250,000 $150,000 $ 27,000 $ 22,000 $220,000 = = BALANCE SHEET OF SOPHIE'S SOFAS Liabilities & Shareholders' Equity Assets Total assets 0 Total liabilities & shareholders' equity Butterfly Tractors had $19.00 million in sales last year. Cost of goods sold was $9.00 million, depreciation expense was $3.00 million,...

  • A project currently generates sales of $10.5 million, variable costs equal to 40% of sales, and...

    A project currently generates sales of $10.5 million, variable costs equal to 40% of sales, and fixed costs of $2.2 million. The firm's tax rate is 35%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $10.5 million to $12 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit (Click to select) by Cash flow (Click to select)...

  • A project currently generates sales of $11.2 million, variable costs equal to 50% of sales, and...

    A project currently generates sales of $11.2 million, variable costs equal to 50% of sales, and fixed costs of $2.1 million. The firm's tax rate is 20%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $11.2 million to $12.6 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit Click to select) by $ Cash flow (Click to...

  • A project currently generates sales of $11.4 million, variable costs equal to 50% of sales, and...

    A project currently generates sales of $11.4 million, variable costs equal to 50% of sales, and fixed costs of $3.4 million. The firm's tax rate is 30%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $11.4 million to $12.8 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit increased Cash flow increased by $ by $1 million....

  • A project currently generate sales of $10.5 million, variable costs equal to 40% of sales, and...

    A project currently generate sales of $10.5 million, variable costs equal to 40% of sales, and fixed costs of $2.2 million. The firms tax rate is 35%. A project currently generates sales of $10.5 million, variable costs equal to 40% of sales, and fixed costs of $2.2 million. The firm's tax rate is 35%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $10.5 million to $12 million. (Input all amounts as positive...

  • Tubby Toys estimates that its new line of rubber ducks will generate sales of $6.00 million,...

    Tubby Toys estimates that its new line of rubber ducks will generate sales of $6.00 million, operating costs of $3.00 million, and a depreciation expense of $0.20 million. If the tax rate is 30%, what is the firm's operating cash flow? (Enter your answer in millions rounded to 2 decimal places.) Firm's operating cash flow million

  • In the past year, TVG had revenues of $3.1 million, cost of goods sold of $2.6...

    In the past year, TVG had revenues of $3.1 million, cost of goods sold of $2.6 million and depreciation expense of $79,250. The firm has a single issue of debt outstanding with book value of $1.1 Million on which it pays an interest rate of 9%. What is the firm’s time’s interest earned ration? (Do not round intermediate calculations. Round your answer to 2 decimal places

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT