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Answer Posted / harshit gupta
CASH PROFIT = NET PROFIT + DEPRECIATION + AMORTIZED EXPENSES + OTHER NON CASH EXPENSES
In other words, Cash profit is net cash receipts after deducting all cash expenses. If we use Net Profit approach to calculate it, we need to add back all non cash expenses & treatments.
It is also referred to as Net Cash Inflow.
By Epm Harshit Gupta
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