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to keep yourself updated subscribe to indigo learn and click the bell icon and download our app one fin to start learning on the go a lot of students have doubt as to how to compute the income taxes paid for cash flow statement to understand this let us have a look at the adjustments where we have provision for taxes advanced taxes let us compute the income tax is paid for cash flow purposes if you follow this technique you will never make a mistake in the examination letamp;#39;s look at the illustration given below is the statement of profit and loss of abc limited and relevant balance sheet information so we have revenue under revenue we have sales interest and dividend that is your you know income then stock adjustment total comes to 4 to seven zero on the expenditure side we have purchases wages and salaries other expenses interest depreciation and profit before tax so profit before tax is given as 710 then you have tax provision of 200 profit after tax for the year 510 and you h
