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How Reserves and surplus is calculated in this ques and working capital in cash flow? please answer.
Hi. I have got the answers. can you please explain me the calculation of free cash flow
We take the profit before interest and tax, less the tax on that profit. (Interest is ignored as always in arriving at the free cash flow).
To turn the profit into a net cash flow, we add back the depreciation that will have been charged, and the adjust for changes in working capital and non-current assets.
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