Question : 1. 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
Choose the correct answer from the options given below:
Option 1: (E), (C), (D), (A), (B)
Option 2: (E), (A), (D), (B), (C)
Option 3: (E), (A), (B), (C), (D)
Option 4: (A), (B), (C), (D), (E)
Correct Answer: (E), (A), (B), (C), (D)
Solution : Following steps are involved in calculating cash flows from operating activities of a company: Goodwill amortised, Operating profit before working capital changes, Cash generated from operations, Income tax paid, Net cash flow from operating activities.
