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June 08-Q3
1)Just cant understand the reason for adding depreciation charge of NCA sold after PBT. Why not deducting it when we are doing cash flow statement.
2)And also loss on sale of NCA still added back. Why?depreciation is not cash flow. while finding the operating cash flow, we usually add it back.
depreciation is done for accounting purpose , it is not really a cash flow.we have deducted depreciation to find the profit, so we add it back to get the cash flow.
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