Need help with a basic technical (tax increase)
Assume tax increases by 10, how will this impact financial statements? I was a bit surprised by that question since Tax increase would usually mean two things, either tax rate increase or increase in revenue.
Assume a tax increase, wouldn't it just decrease NI and Cash & Cash Equivalents by 10, and then decrease retained earnings by 10 (assmuing the divident payout stays the same).
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