Solution-What were the firms net incomes and cash flows

What were the firms net incomes and cash flows

Assignment Help Cost Accounting

Reference no: EM13549016

Profits versus Cash Flow. Butterfly Tractors had $14 million in sales last year. Cost of goods sold was S8 million, depreciation expense was $2 million, interest payment on outstanding debt was $1 million, capital expenditures were $1 million, and the firn's tax rate was 35 percent.

a. What were the firm's net incomes? Cash flows from operations, and cash flow from assets?.

b. What would happen to net income and cash flows if depreciation were increased by $1 million? How do you explain the differing impact of depreciation on income versus cash flow?

c. Would you expect the change in income and cash flows from the change in depreciation to have a positive or negative impact on the firm's stock price?

d. Now consider the impact on net income and cash flow if the firm s interest expense were $1I million higher. Why is this case different from part (b)?

Reference no: EM13549016

Questions Cloud

Prepare a statement of retained earnings for year : Messer Company had retained earnings at the beginning of the current year of $590,000. During the year, the following activities occurred - Prepare a statement of retained earnings for the year.

Evaluate the percentage of sugar preset in 12.00 g of mike : Given that a 12.00 g milk chocolate bar cotains 9.200 g of sugar, calculate the percentage of sugar preset in 12.00 g of mike chocolate. express your aswer numerically

An electron in an atom has an orbital angular momentum : An electron in an atom has an orbital angular momentum with ml = 0. What is the component morb,z? (J*s) What is the component ?orb,z? (J/T) If an atom is in an external magnetic field B of magnitude 45 mT and directed along the z-axis, what is the..

Estimate how far up the plane does the ball go : A solid spherical ball of mass 2.74 kg and radius 0.15 m rolls along a smooth, level surface with a speed of 2 m/s. How far up the plane does the ball go

What were the firms net incomes and cash flows : What were the firms net incomes and cash flows from operations, and cash flow from assets - Would you expect the change in income and cash flows from the change in depreciation

Determine the de broglie wavelength of the neutrino : Suppose a neutrino is created and has an energy of 49.0 MeV. (a) Assuming the neutrino, like the photon, has no mass and travels at the speed of light, find the momentum of the neutrino. (b) Determine the de Broglie wavelength of the neutrino.

Obtain what is the tension in the support cable : A sign weighing 498 N is suspended at the end of a uniform rod 4.04 m long weighing 663 N as shown below. What is the tension in the support cable

To strengthen his arm and chest muscles : To strengthen his arm and chest muscles, an 75.0 kg athlete 2.00 m tall is doing a series of push-ups as shown in the figure below . His center of mass is 1.20 m from the bottom of his feet, and the centers of his palms are 30.0 cm from the top of..

Prepare a note disclosure relating to incident : Counsel believes that the homeowner's case is much weaker and will be decided in favor of Welker - Prepare a note disclosure relating to this incident.

User Account

All Pages

What were the firms net incomes and cash flows

Reference no: EM13549016

Reference no: EM13549016

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT