Arrange the following items in proper balance sheet presentation: (Amounts to be deducted should be indicated with parentheses or a minus sign.)

Accumulated depreciation	$	383,000
Retained earnings		72,000
Cash		14,000
Bonds payable		173,000
Accounts receivable		53,000
Plant and equipmentoriginal cost		787,000
Accounts payable		41,000
Allowance for bad debts		15,000
Common stock, $1 par, 100,000 shares outstanding		100,000
Inventory		73,000
Preferred stock, $58 par, 1,000 shares outstanding		58,000
Marketable securities		21,000
Investments		24,000
Notes payable		41,000
Capital paid in excess of par (common stock)		89,000

Upon completion, answer the following.

The Rogers Corporation has a gross profit of $784,000 and $314,000 in depreciation expense. The Evans Corporation also has $784,000 in gross profit, with $48,900 in depreciation expense. Selling and administrative expense is $200,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. b. Calculate the difference in cash flow between the two firms.