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The Moore Enterprise has gross profit of $880,000 with amortization expense of $360,000. The Kipling Corporation has $880,000 in gross profits but only $60,000 in
The Moore Enterprise has gross profit of $880,000 with amortization expense of $360,000. The Kipling Corporation has $880,000 in gross profits but only $60,000 in amortization expense. The selling and administration expenses are $120,000; the same for each company. If the tax rate is 40 percent, calculate the cashflow for each company. Explain the causes for differences in cashflows between the two firms
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