The Moore Enterprise has gross profit of $1,220,000 with amortization expense of $530,000. The Kipling Corporation has $1,220,000 in gross profits but only $77,000 in amortization expense. The selling and administration expenses are $137,000; the same for each company.

If the tax rate is 30 percent, calculate the cash flow for each company.

Cash flow Moore$ -------- Kipling $---------

Calculate the difference in cash flow between the two firms?

Difference in cash flow $------------