Identify the correct sequence for the following activities.
(A) Cash generated from operations
(B) Dividend tax paid
(C) Net profit before tax and extra ordinary items
(D) Operating profit before working capital changes
(E) Proceeds from sale of investment
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (C), (D), (A), (E), (B)
A cash flow statement (indirect method) runs through operating, then investing, then financing activities:
(C) Net profit before tax and extra ordinary items – the starting point of operating activities.
(D) Operating profit before working capital changes – after adding back non-cash and non-operating items.
(A) Cash generated from operations – after adjusting changes in current assets and current liabilities.
(E) Proceeds from sale of investment – an investing activity.
(B) Dividend tax paid – tax paid on dividend is shown under financing activities, along with dividend paid.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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