Arrange the following activities in correct order with reference to Cash Flow statement.

A. Income Tax Paid

B. Net profit before tax and extra ordinary items.

C. Sale of Non-current investments

D. Operating profit before working capital changes

E. Redemption of Debentures

Choose the correct answer from the options given below :

B, D, A, C, E

The correct answer is option (3) : B, D, A, C, E

The correct order of activities with reference to the Cash Flow statement would be:

B. Net profit before tax and extraordinary items: This is the starting point for the cash flow statement, as it represents the profitability of the company before taxes and extraordinary items. Any item like reserves or tax is added to the profit as stated by the statement of profit and loss.

D. Operating profit before working capital changes: This represents the profit generated from the company's core operations before considering changes in working capital. Any non cash item are added back to the net profit before tax and extraordinary items to calculate the operating profit before working capital changes.

A. Income Tax Paid: Income tax paid comes after operating profit, as it represents the tax obligation on the profit generated by the company. It is an operating activity and deducted from the cash flow from operating activities at the end to know the net cash flow from operating activity. 

C. Sale of Non-current investments: Proceeds from the sale of non-current investments would come next, representing cash inflows from the sale of long-term assets. It is an investing activity which comes after the operating activity.

E. Redemption of Debentures: Finally, redemption of debentures represents cash outflows related to repaying long-term debt. It is a financing activity which is represented after operating and investing activity.

So, the correct order is: B, D, A, C, E.