How do you calculate the profit before tax when it is not given but you are given retained earnings of the two years
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Cash flow statement
6y ago#1The profit after tax is the difference between the two retained earnings.
To get the profit before tax (if the question requires it, bearing in mind that you cannot be asked to prepare the entire statement) then there will be information in the question allowing you to be able to calculate the amount of the tax.
If you are looking at a specific question in the BPP Revision Kit then if you say which one I will be able to explain.
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