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The Jupiter Corporation has a gross profit of $726,000 and $337,000 in depreciation expense. The Saturn Corporation also has $726,000 in gross profit, with $48,300

The Jupiter Corporation has a gross profit of $726,000 and $337,000 in depreciation expense. The Saturn Corporation also has $726,000 in gross profit, with $48,300 in depreciation expense. Selling and administrative expense is $220,000 for each company.

(a)

Given that the tax rate is 40 percent, compute the cash flow for both companies. (Omit the "$" sign in your response.)

Jupiter Saturn
Cash flow $ $

(b)

What is the difference in cash flow between the two firms? (Omit the "$" sign in your response.)

Difference in cash flow $

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