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.

	Rogers	Evans
Cash flow	$	$

b.	Calculate the difference in cash flow between the two firms.

Difference in cash flow

$