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ABC Corporation has $850,000 in gross profit with $350,000 in depreciation expense. 123 Corporation has $8500,000 in gross profit with $150,000 in depreciation expense. Each

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ABC Corporation has $850,000 in gross profit with $350,000 in depreciation expense. 123 Corporation has $8500,000 in gross profit with $150,000 in depreciation expense. Each company had $450,000 in selling and admin expenses. The tax rate for each company is 18% Calculate the net profit and cash flow for each company, Explain any differences. (6 marks)

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