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The Rogers Corporation has a gross profit of $916,000 and $387,000 in amortization expense. The Evans Corporation has $916,000 in gross profit, with $90,000 in amortization expense. Selling and administrative expense is $123,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Cash flow Rogers $ 243600 b. What is the difference in cash flow between the two firms? Difference in cash flow Evans 421800 $

The Rogers Corporation has a gross profit of $916,000 and $387,000 in amortization expense. The Evans Corporation has $916,000 in gross profit, with $90,000 in amortization expense. Selling and administrative expense is $123,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Cash flow Rogers $ 243600 b. What is the difference in cash flow between the two firms? Difference in cash flow Evans 421800 $

Essentials Of Investments
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
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The Rogers Corporation has a gross profit of $916,000 and $387,000 in amortization expense. The Evans Corporation has $916,000 in gross profit, with $90,000 in amortization expense. Selling and administrative expense is $123,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Cash flow Rogers $ 243600 b. What is the difference in cash flow between the two firms? Difference in cash flow Evans $ 421800 $
Transcribed Image Text:The Rogers Corporation has a gross profit of $916,000 and $387,000 in amortization expense. The Evans Corporation has $916,000 in gross profit, with $90,000 in amortization expense. Selling and administrative expense is $123,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Cash flow Rogers $ 243600 b. What is the difference in cash flow between the two firms? Difference in cash flow Evans $ 421800 $
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