Messer’s XYZ Ltd. Provides the following information: Net Profit before income tax = Rs. 40000, Depreciation charged during the year = Rs. 10000, Goodwill written off during the year = Rs. 10000, Income Tax for the year = Rs. 20000. Calculate fund from operation.
Please explain what is the treatment of income tax. And what will be the difference in treatment if net profit after tax is provided.
if net profit after tax in given...income tax should be added to get profit before tax...
and payment of income tax will be deducted from cash flow from operation to get cash flow fromoperating activities
Thanks a lot !!
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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