Arrange the following in a correct sequence, for preparing Cash Flow Statement.

(A) Cash flows from Operating Activities
(B) Cash flows from Financing Activities
(C) Cash flows from Investing Activities
(D) Net Increase in Cash and Cash equivalents
(E) Cash and Cash Equivalents in the end

Choose the correct answer from the options given below.

(A), (C), (B), (D), (E)

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

To prepare a Cash Flow Statement, the correct sequence would be:

(A) Cash flows from Operating Activities: This section details the cash generated or used in the core business operations.
   
(C) Cash flows from Investing Activities: This section outlines cash transactions related to the purchase and sale of long-term assets, such as equipment or investments.

(B) Cash flows from Financing Activities: This section captures cash movements related to financing the business, such as loans, equity financing, and dividend payments.

(D) Net Increase in Cash and Cash Equivalents: This figure sums the net cash flows from the operating, investing, and financing activities to show the overall change in cash during the period.

(E) Cash and Cash Equivalents in the end: This represents the ending cash balance, calculated by adding the net increase in cash to the beginning cash balance.

This is the correct sequence of preparing cash flow statement-
(I) Cash flows from operating activities
(II) Cash flows from investing activities
(III) Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents (I+II+III)
+ Cash and cash equivalents at the beginning
= Cash and cash equivalents at the end.