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CASH FLOW

Forums › Ask CIMA Tutor Forums › Ask CIMA F1 Tutor Forums › CASH FLOW

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  • June 4, 2020 at 3:59 am #572819
    Eugeneakorli
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    why is the finance cost treated as an inflow on the cash statement please

    June 4, 2020 at 5:08 pm #572872
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7060
    • ☆☆☆☆☆

    Hi,

    It is not an inflow, it is being added back to the profit before tax to get back to the profit from operations so that we can calculate the cash flow from operations.

    Thanks

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