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The Rogers Corporation has a gross profit of $704,000 and $333,000 in depreciation expense. The Evans Corporation also has $704,000 in gross profit, with $49,300 in depreciation expense. Selling and administrative expense is $191,000 for each company. 

a. Given that the tax rate is 40 percent, compute the cash flow for both companies.

Cash Flow Rogers=

Cash Flow Evans=

b. Calculate the difference in cash flow between the two firms.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92302112

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