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Cash Flow Statement

Gaurav Wadhwa (Student) (59 Points)

05 November 2009

While calculating cash operating profit/cash flow before working capital changes in cash flow chapter is Tax paid ( as-3 adjustments ) deducted ??

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2 Replies

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

In cash flow statement, TAX PAID is deducted after all the adjustments of OPERATING ACTIVITIES...

Gaurav Wadhwa (Student) (59 Points)
Replied 05 November 2009

Thats the problem ... We arrive at Cash flow before working capital changes after adjusting net profit for non-cash items ... But Tax Paid is deducted At the end .. But I think Tax Paid is also an operating Expense so it should be deducted as well to Calculate CAsh Profit ...