Arrange the following steps of Cash flow from Operating Activities in correct sequence.

A. Cash flow from Operating Activities
B. Cash generated from operation
C. Net profit loss before Tax and Extra ordinary items
D. Income tax paid
E. Operating profit before working capital changes

Choose the correct answer from the options given below:

C, E, B, D, A

The correct answer is Option (2) - C, E, B, D, A.

CASH FLOW FROM OPERATING ACTIVITIES-
Net Profit/Loss before Tax and Extraordinary Items
 ADD: Deductions already made in Statement of Profit and Loss on account of Non-cash items such as Depreciation, Goodwill to be Written-off.
 ADD: Deductions already made in Statement of Profit and Loss on Account of Non-operating items such as Interest.
DEDUCT: Additions (incomes) made in Statement of Profit and Loss on Account of Non-operating items such as Dividend received, Profit on sale of Fixed Assets
Operating Profit before Working Capital changes
Add : in case of increase in current assets (other than cash and cash equivalent) and decrease in current liabilities.
Less : in case of decrease in current assets (other than cash and cash equivalent) and decrease in current liabilities.
Cash Flows from Operation Activities before Tax and Extraordinary items
– Income Tax Paid
+/–Effects of Extraordinary Item
THE FIGURE AFTER ALL THE ADDITIONS AND DEDUCTIONS IS CASH FLOW FROM OPERATING ACTIVITIES.