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April 28, 2015

Homework Help: Finance

Posted by Mesha on Monday, March 29, 2010 at 12:50am.

The Monley Corporation of New Jersey has gross profits of $980,000 and $260,000 in depreciation expense. The Majors Corporation of Nebraska also has $980,000 in gross profit, with $60,000 in depreciation expense. Selling and administrative expense is $120,000 for each company.

Compute the cash flow for both companies with a tax rate of 40%. Explain the difference in cash flow between the two firms.

THIS IS THE CHART I MUST FILL IN.

Gross profit
Selling and admin expense Depreciation Operating profit
Taxes
Earnings after tax
Plus depreciation expense
Cash Flow

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