The Rogers Corporation has a gross profit of $704,000 and $343,000 in depreciation expense. The Evans Corporation also has $704,000 in gross profit, with $47,300 in depreciation expense. Selling and administrative expense is $191,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies Cash Flow Rogers= Cash Flow Evans= b. Calculate the difference in cash flow between the two firms
The Rogers Corporation has a gross profit of $704,000 and $343,000 in depreciation expense. The Evans Corporation also has $704,000 in gross profit, with $47,300 in depreciation expense. Selling and administrative expense is $191,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies Cash Flow Rogers= Cash Flow Evans= b. Calculate the difference in cash flow between the two firms
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...
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The Rogers Corporation has a gross profit of $704,000 and $343,000 in
a. Given that the tax rate is 40 percent, compute the cash flow for both companies
Cash Flow Rogers=
Cash Flow Evans=
b. Calculate the difference in cash flow between the two firms
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