Question

Identify the correct sequence of the following steps involved in calculating cash flows from operating activities of a company:(A) Operating profit before working capital changes
(B) Cash generated from operations
(C) Income tax paid
(D) Net cash flow from operating activities
(E) Goodwill amortised

• A. E, C, D, A, B
• B. E, A, D, B, C
• C. E, A, B, C, D
• D. A, B, C, D, E

Answer 1

The Correct Option is D

The correct sequence is (A) Operating profit \(→\) (B) Cash generated \(→\) (C) Tax paid \(→\) (D) Net cash flow \(→\) (E) Goodwill amortised.
Hence, the correct answer is Option 4.