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Cash flow statement, dividend paid
Accountancy
Why is the dividend paid not added back to the net profit for arriving at the operating cash flow,as it a non operating expense(icai illustration 8)
Answers (7)
CA Suraj Lakhotia Admin
Net profit means net profit as per P&L. Dividend paid is adjusted in P&L cumulative balance in balance sheet
Sir iam thinking that, dividend paid is adjusted after the calculation of net profit ,so it is not added back ,am i wrong sir?
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