The Rogers Corporation has a gross profit of $704,000 and $318,000 in depreciation expense. The Evans Corporation also has $704,000 in gross profit, with $44,200 in depreciation expense. Selling and administrative expense is $252,000 for each company.
Given that the tax rate is 40 percent, compute the cash flow for both companies.

1. The Rogers Corporation:

The earning of the corporation is: $704,000

The addition to the cash flow includes:

+) Depreciation expense: $318,000

The subtractions to the cash flow includes:

+) Selling and administrative expense: $252,000

+) Paying tax: Tax = 40% x Gross profit = 40% x 704,000 = $281,600

=> The total cash flow is: 704,000 + 318,000 - 252,000 - 281,600 = $488,400

2. The Evans Corporation:

The earning of the corporation is: $704,000

The addition to the cash flow includes:

+) Depreciation expense: $44,200

The subtractions to the cash flow includes:

+) Selling and administrative expense: $252,000

+) Paying tax: Tax = 40% x Gross profit = 40% x 704,000 = $281,600

=> The total cash flow is: 704,000 + 44,200 - 252,000 - 281,600 = $214,600

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

c

explanation: