RECONCILIATION OF PROFIT FROM OPERATIONS TO NET CASH FROM OPERATING ACTIVITIES

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:27AM in AAT student discussion
Please help, I am very confused in preparing the above statement but my main problem is at the bottom of the statement, I dont know whether tax paid & interest paid is included in the statement or they go to the cash flow statement. Please differentiate for me when to include it in the reconciliation & when not to include it in the reconciliation.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:RECONCILIATION OF PROFIT FROM OPERATIONS TO NET CASH FROM OPERATING ACTIVITIES

    Tax and Interest paid are deducted from the Reconciliaton and then the total after all additions and deductions is put onto the Cashflow Statement.

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