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The Rogers Corporation has a gross profit of $ 7 8 4 , 0 0 0 and $ 3 1 4 , 0 0 0

The Rogers Corporation has a gross profit of $784,000 and $314,000 in depreciation expense. The Evans Corporation also has $784,000 in gross profit, with $48,900 in depreciation expense. Selling and administrative expense is $200,000 for each company.
a. Given that the tax rate is 40 percent, compute the cash flow for both companies.
\table[[,Rogers,Evans],[Cash flow,,]]
b. Calculate the difference in cash flow between the two firms.
Difference in cash flow
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