Practicing Success
Which of the following will be added in Net Profit before tax & extraordinary items, to reach at operating profit before Working Capital changes? |
Depreciation Interest income Dividend income Increase in Trade receivable |
Depreciation |
The correct answer is Option (1) - Depreciation Depreciation is a non cash item which should be added back to net profit before tax and ordinary items because there is no use of cash in depreciation. Net Profit/Loss before Tax and Extraordinary Items |