The Rogers Corporation has a gross profit of $1,012,000 and $459,000 in amortization expense. The Evans Corporation has $1,012,000 in gross profit, with $170,000 in amortization expense. Selling and administrative expense is $131,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Cash flow Rogers $ Evans $ b. What is the difference in cash flow between the two firms? Difference in cash flow $
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- The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?The Moore Enterprise has gross profit of $1,180,000 with amortization expense of $510,000. The Kipling Corporation has $1,180,000 in gross profits but only $75,000 in amortization expense. The selling and administration expenses are $135,000; the same for each company. If the tax rate is 20 percent, calculate the cash flow for each company. Kipling Cash flow $ Difference in cash flow Moore $ Calculate the difference in cash flow between the two firms? $The Moore Enterprise has gross profit of $1,140,000 with amortization expense of $490,000. The Kipling Corporation has $1,140,000 in gross profits but only $73,000 in amortization expense. The selling and administration expenses are $133,000; the same for each company. If the tax rate is 40 percent, calculate the cash flow for each company. Moore Kipling Cash flow $ $ Calculate the difference in cash flow between the two firms? Difference in cash flow $
- The Rogers Corporation has a gross profit of $724,000 and $283,000 in depreciation expense. The Evans Corporation also has $724,000 in gross profit, with $48,400 in depreciation expense. Selling and administrative expense is $243,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. Rogers Evans b. Calculate the difference in cash flow between the two firms. Difference in cash flow Next >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 firmsThe Rogers Corporation has a gross profit of $799,000 and $281,000 in depreciation expense. The Evans Corporation also has $799,000 in gross profit, with $47,200 in depreciation expense. Selling and administrative expense is $211,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. b. Calculate the difference in cash flow between the two firms.
- The Rogers Coporation has a gross profit of $776,000 and $332,000 in depreciation expense. The Evans Corporation also has $776,000 in gross profit, with $45,500 in depreciation expense. Selling and administrative expense is $256,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companies. b. Calculate the difference in cash flow between the two firms.The Rogers Corporation has a gross profit of $770,000 and $297,000 in depreciation expense. The Evans Corporation also has $770,000 in gross profit, with $45,500 in depreciation expense. Selling and administrative expense is $252,000 for each company. a. Given that the tax rate is 40 percent, compute the cash flow for both companiesJannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of P250,000 and interest expenses of P55,000. If Jannah's tax rate is 34% and the income statement is complete, what is Jannah's operating cash flow? A. P246,700 B. P283,000 C. P33,000 D. P300,000
- Benson, Inc., has sales of $44830, costs of $14,370, depreciatior and interest expense of $2,390. The tax rate if 23 percent. What is the operating cash flow, or OCF?Sheaves, Inc.., has sales of $55,500, costs of $25.200, depreciation expense of $2,800, and interest expense of $2,550. If the tax rate is 24 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculetions.) Operating cash fowSheaves, Inc., has sales of $54,000, costs of $24,600, depreciation expense of $2,650, and interest expense of $2,400. If the tax rate is 21 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)