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

Answer: (D)

A, B, C, D, E

Answer 2

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.