The Moore Enterprise has gross profit of $1,060,000 with amortization expense of $450,000. The Kipling Corporation has $1,060,000 in gross profits but only $69,000 in amortization expense. The selling and administration expenses are $129,000; the same for each company.

If the tax rate is 40 percent, calculate the cash flow for each company.

MooreKiplingCash flow$$

Calculate the difference in cash flow between the two firms?

Difference in cash flow$