How depreciation is treated to the net profit before tax in calculating cash flow from operating activities while preparing cash flow statement of the company?

Added

The correct answer is option 1- Added.

Depreciation is added to the net profit before tax in calculating cash flow from operating activities while preparing cash flow statement of the company

Depreciation is a non-cash item and hence it does not result in any cash flow. Therefore, this amount must be added back to the net profit while calculating cash flow from operating activity.