The Jupiter Corporation has a gross profit of $748,000 and $276,000 in amortization expense. The Saturn Corporation has $748,000 in gross profit, with $440,000 in amortization expense. Selling and administrative expense is $164,000 for each company.

a. Given that the tax rate is 40 percent, compute the cash flow for both companies.

	Jupiter	Saturn
Cash flow	$	$

b. What is the difference in cash flow between the two firms?

Difference in cash flow $