Question: Last year, Martin Inc. reported $ 1 1 , 1 0 9 of sales, $ 4 , 8 5 2 of operating costs other than
Last year, Martin Inc. reported $ of sales, $ of operating costs other than depreciation, and $ of depreciation. The company had $ of bonds outstanding that carry a interest rate, and its federalplusstate income tax rate was This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $ By how much will the depreciation change cause:
the firm's net income to change? $
its operating cash flow to change? $
Notes:
i To get the proper sign please subtract last year's value from this year's value ie This Year Last Year;
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