Per my understanding:
- Profit accumulates under ‘Reserves’ in the B/S.
- Reserves get invested in either ‘operational’ or ‘financial’ assets.
- Since your aim is to find the amount invested in the operational assets, you should minus Investments (in financial products) and Cash Equivalents from the Reserves to arrive at the net profit is being reinvested in the business (year-on-year).
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