The Moore Enterprise has gross profit of $1,140,000 with amortization expense of $490,000. The Kipling Corporation has $1,140,000 in gross profits but only $73,000 in amortization expense. The selling and administration expenses are $133,000
The Moore Enterprise has gross profit of $1,140,000 with amortization expense of $490,000. The Kipling Corporation has $1,140,000 in gross profits but only $73,000 in amortization expense. The selling and administration expenses are $133,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Moore Enterprise has gross profit of $1,140,000 with amortization expense of $490,000. The Kipling Corporation has $1,140,000 in gross profits but only $73,000 in amortization expense. The selling and administration expenses are $133,000; the same for each company. If the tax rate is 40 percent, calculate the cash flow for each company. Moore Kipling Cash flow $ $ Calculate the difference in cash flow between the two firms? Difference in cash flow $
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