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Because they have not been subtracted in arriving at the incremental profit (of 10.50 at time 1). They have only been subtracted in the workings of the tax payable (of 0.50 at time 1).
Thanks!
One more question on 2014 Jun Q3 (c) – (iv) sales made to Department C
Why the cash flow of Ndege (Dept B) subtracted this 10% from Dept C?
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