What is difference in cash flow between the two companies

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Reference no: EM131321016

Depreciation and Cash Flow- Rogers Corporation has a gross profit of $880,000 and $360,000 in depreciation expenses. The Evans Corporation also has $880,000 in gross profit, with $60,000 in depreciation expenses. Selling and administrative expenses is $120,000 for each company. The tax rate is 40 percent for both companies.

A. What is the cash flow for both companies?

B. What is the difference in cash flow between the two companies?

Reference no: EM131321016

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