A B C D E F G H P-21: Depreciation and cash flow (LOS) The Rogers Corporation has a gross profit of $880,000 and $360,000 in depreciation expense. The Evans Corporation also has $880,000 in gross profit, with $60,000 in depreciation expense. Selling and administrative expense is $120,000 for each company. Given that the tax rate is 40 percent, compute the cash flow for both companies. Explain the difference in cash flow between the two firms. 1 2 On Own Tax Rate: 0.4 Taxes 5 Given: Gross Profit Depreciation Sell&Admin Net Profit Cash Flow a) Rogers Corp 880000 360000 120000.00 b) Evans Corp 880000 60000 120000.00 c) 69 7 8 Oper Profit