What is the difference in cash flow between the two firms

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Problem - The Jupiter Corporation has a gross profit of $880,000 and $375,000 In amortization expense. The Saturn Corporation has $880,000 in gross profit, with $550,000 in amortization expense. Selling and administrative expense is $1/5,000 for each company.

Required -

a. Given that the tax rate is 40 percent, compute the cash flow for both companies.

b. What is the difference in cash flow between the two firms?

Reference no: EM132713395

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