Harish (CS Executive) (386 Points)
15 May 2010Messer’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.
Arvind Khemka
(practicing CA)
(210 Points)
Replied 15 May 2010
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
CAclubindia
