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What are the steps to find the difference in cashflow

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Reference no: EM132475677

Question 1: What are the steps to find the difference in cashflow between two firms.

Point 1: The Moore Enterprise has gross profit of $1,180,000 with amortization expense of $510,000. The Kipling Corporation has $1,180,000 in gross profits but only $75,000 in amortization expense. The selling and administration expenses are $135,000; the same for each company.

Point 2: If the tax rate is 20 percent, calculate the cash flow for each company

Reference no: EM132475677

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