Cash flow statement
This query is : Open
17 August 2017
I have one doubt regarding Indirect method of preparing cashflow statementIn cashflow statement whenever in additional information it given as net profit for the year endedxx is ₹xx after providing depreciation we used to add back depreciation only while doing adjustments for non cash and non operating items for eg ques 7 of practice manual of Acc pg no: 2.33Now as per question no 10 of practice manual of Fm they have added profit by sale of fixed asset as well -ques no 10 pg no 3.67My doubt is if we are giving effect of non operating items such as profit / sale then why no treatment for other operating items for eg dividend payable given Is there printing error in solutions?
17 August 2017
we add profit on sale of asset because we add the sale proceed of that asses
17 August 2017
Dividend payable is non cash item whereas dividend paid is a cash item
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