Item5 eBookItem 5 The Moore Enterprise has gross profit of $1,000,000 with amortization expense of $420,000. The Kipling Corporation has $1,000,000 in gross profits but only $66,000 in amortization expense. The selling and administration expenses are $126,000; the same for each company. If the tax rate is 40 percent, calculate the cash flow for each company.

Calculate the difference in cash flow between the two firms?

Difference in cash flow $