Stein Books Inc. sold 2,000 finance textbooks for $270 each to High Tuition University in 20X1. These books cost $240 to produce. Stein Books spent $12,500 (selling expense) to convince the university to buy its books. Depreciation expense for the year was $15,600. In addition, Stein Books borrowed $108,000 on January 1, 20X1, on which the company paid 18 percent interest. Both the interest and principal of the loan were paid on December 31, 20X1. The publishing firm's tax rate is 30 percent. Prepare an income statement for Stein Books. Stein Books Inc. Income Statement For the Year Ending December 31, 20X1 $ 0 0 The Rogers Corporation has a gross profit of $716,000 and $283,000 in depreciation expense. The Evans Corporation also has $716,000 in gross profit, with $47,000 in depreciation expense. Selling and administrative expense is $221,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Rogers Evans Cash flow b. Calculate the difference in cash flow between the two firms. Difference in cash flow