cash flow

Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

cash flow

Postby chandniwadhwani92 » Tue Nov 18, 2014 6:07 am

Do we DEDUCT or ADD taxes paid or receivable while calculating CFO IN INDIRECT METHOD?

Can u describe tax treatment in indirect method while calculating CFO?????/

Finance Junkie
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Joined: Wed Apr 09, 2014 6:28 am

cash flow

Postby edupristine » Tue Nov 18, 2014 11:09 am

In indirect method we start with cash receipts from customers or sales.
We deduct any increase in receivables(Cash not received), and we also deduct any taxes paid(Cash outflow).

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