The correct order of items in the Cash Flow Statement should be :

(A) Calculate Net Profit before Tax and Extraordinary items
(B) Cash generated from operation
(C) Net profit as per Balance sheet
(D) Cash flow from Operating Activities
(E) Calculating Operating Profit before working Capital Changes

Choose the correct answer from the options given below :

(C), (A), (E), (B), (D)

The correct answer is Option (4) - (C), (A), (E), (B), (D).

(C) Net profit as per Balance sheet- It is taken first from the profit and loss account or balance sheet at starting point.

(A) Calculate Net Profit before Tax and Extraordinary items- If there is any tax and extraordinary items included in the net profit then they are adjusted to calculate the net profit before tax and extraordinary items.

(E) Calculating Operating Profit before working Capital Change- ADD Deductions already made in Statement of Profit and Loss on account of Non-cash items such as Depreciation, Goodwill to be Written-off and Deductions already made in Statement of Profit and Loss on Account of Non-operating items such as Interest and DEDUCT any 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 to calculate Operating Profit before Working Capital changes.

(B) Cash generated from operation- After it, increase or decrease in current assets and current liabilities are adjusted to calculate the cash generated from operations.

(D) Cash flow from Operating Activities- After calculating cash generated from operations any  Income Tax Paid is deducted or any other item which has to be deducted or added are adjusted to calculate the cash flow from operating activity.