Butterfly Tractors had $16.50 million in sales last year. The cost of goods sold was $8.50 million, depreciation expense was $2.50 million, interest payment on outstanding debt was $1.50 million, and the firm's tax rate was 21%. A. What was the firm's net income? B. What was the firm's cash flow?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
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General Accounting

Butterfly Tractors had $16.50 million in sales last year. The cost of
goods sold was $8.50 million, depreciation expense was $2.50
million, interest payment on outstanding debt was $1.50 million,
and the firm's tax rate was 21%.
A. What was the firm's net income?
B. What was the firm's cash flow?
Transcribed Image Text:Butterfly Tractors had $16.50 million in sales last year. The cost of goods sold was $8.50 million, depreciation expense was $2.50 million, interest payment on outstanding debt was $1.50 million, and the firm's tax rate was 21%. A. What was the firm's net income? B. What was the firm's cash flow?
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