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Nov 2020 - Q.1(b)

Financial Management

Can anyone please let me know why depreciation has not been taken into account while calculating CFAT?

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Varshaa M

Varshaa M

CA Final

33K+

18-Apr-23 11:34

197

Answers (4)

Since there is no tax, you don't have to [add back non cash item and calculate tax on net profit and add back dep to get net cash inflows] It is straight away cash inflow as there is no tax


Abishek M

Abishek M

CA Final

11K+

18-Apr-23 11:39

As there is no tax, there is just subtraction of depreciation for calculating profit & then addition of same amount of depreciation for Net cash flow. Appears as no effect. Hence.....


Vedant Bedekar

Vedant Bedekar

CA Final

7K+

18-Apr-23 11:50

Thanks a lot


Thread Starter

Varshaa M

Varshaa M

CA Final

33K+

18-Apr-23 12:24

If there is no tax there will be no effect on non cash expenses


mani charan

mani charan

CA Final

3K+

19-Apr-23 11:19

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