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Q 3 . The Rogers Corporation has a gross profit of $ 8 8 0 , 0 0 0 and $ 3 6 0 ,

Q3. 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.
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