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Why should we deduct decrease in inventory from operating profit ?


Jitendra Kumar

Jitendra Kumar

CA Final

41K+

18-Aug-22 11:37

419

Answers (11)

Best Answer

Decrease in inventory means the Sale of inventory, which is a Cash Inflow. So , it is to be added not deducted


Are you talking about the working capital changes ?


Avasarala Vivek Aditya

Avasarala Vivek Aditya

CA Inter

6K+

18-Aug-22 12:16

https://youtu.be/BCujphqmx64 Covered in detail in the class. Relevant video is available at the above link.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

18-Aug-22 12:27

Sir should I do preparation and presentation of FS first or AS-3 bcz when I was watching AS-3 there was some question on debentures which I didn't understand.


Sugam SM

Sugam SM

CA Final

9K+

18-Aug-22 12:33

So. I can continue with AS 3


Sugam SM

Sugam SM

CA Final

9K+

18-Aug-22 12:48

Yes.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

18-Aug-22 13:01

I want explanation in this marked ans And 3 4 adjustment

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A M K

A M K

CA Inter

2K+

19-Aug-22 23:35

A M K

I want explanation in this marked ans And 3 4 adjustment

It is 3 question of ipcc nov 2019


A M K

A M K

CA Inter

2K+

19-Aug-22 23:38

Do seperate forum post for quick response


Sugam SM

Sugam SM

CA Final

9K+

19-Aug-22 23:39

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