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Arrange the f ollowing into correct sequence while computing cash flow from operating actives.
A. Compute Net Profit before tax after m aking necessary adjustments.
B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.
C. Calculate the dif ference between opening and closing balance in statement of profit and loss.
D. Compute operating profit by making adjustment for working capital changes.
E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.
B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.
C. Calculate the dif ference between opening and closing balance in statement of profit and loss.
D. Compute operating profit by making adjustment for working capital changes.
E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.
Choose the correct answer from the options given below:
- a)A, C, D, B, E
- b)C, A, D, B, E
- c)A, B, D, C, E
- d)C, A, B, D, E
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Arrange the f ollowing into correct sequence while computing cash flow...
Calculation of Cash Flow from Operating Activities:
Step 1: Calculate the difference between opening and closing balance in statement of profit and loss
- This step helps in understanding the overall financial performance over a period.
Step 2: Compute Net Profit before tax after making necessary adjustments
- Adjustments are made to account for non-cash and non-operating activities to get an accurate picture of the company's profitability.
Step 3: Compute Operating profit before working capital changes by making adjustment for non-cash and non-operating activities
- This step helps in determining the profit generated from core business operations.
Step 4: Compute operating profit by making adjustment for working capital changes
- Working capital changes are considered to understand the impact on cash flows from operating activities.
Step 5: Calculate cash generated/cash used from operating activities by deducting tax paid from operating profit
- This final step helps in arriving at the actual cash flow generated from the company's operating activities after considering all adjustments and tax payments.
Therefore, following the sequence of steps D, C, A, B, E would lead to the correct computation of cash flow from operating activities.
Step 1: Calculate the difference between opening and closing balance in statement of profit and loss
- This step helps in understanding the overall financial performance over a period.
Step 2: Compute Net Profit before tax after making necessary adjustments
- Adjustments are made to account for non-cash and non-operating activities to get an accurate picture of the company's profitability.
Step 3: Compute Operating profit before working capital changes by making adjustment for non-cash and non-operating activities
- This step helps in determining the profit generated from core business operations.
Step 4: Compute operating profit by making adjustment for working capital changes
- Working capital changes are considered to understand the impact on cash flows from operating activities.
Step 5: Calculate cash generated/cash used from operating activities by deducting tax paid from operating profit
- This final step helps in arriving at the actual cash flow generated from the company's operating activities after considering all adjustments and tax payments.
Therefore, following the sequence of steps D, C, A, B, E would lead to the correct computation of cash flow from operating activities.
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Community Answer
Arrange the f ollowing into correct sequence while computing cash flow...
The correct sequence for computing cash flow from operating activities is as follows:
1. Compute Net Profit before tax after making necessary adjustments (Option A):
1. Compute Net Profit before tax after making necessary adjustments (Option A):
- Begin by calculating the net income before tax.
- Make necessary adjustments for any extraordinary or non-recurring items to arrive at the adjusted net profit before tax.
2. Compute operating profit before working capital changes by making adjustments for non-cash and non-operating activities (Option B):
- Add back non-cash expenses like depreciation and amortization.
- Subtract non-operating income or add non-operating expenses.
- The result is the operating profit before working capital changes.
3. Compute operating profit by making adjustments for working capital changes (Option D):
- Analyze the changes in current assets and current liabilities (excluding cash and cash equivalents, short-term loans, and current maturities of long-term debt).
- Add the decrease in current assets or subtract the increase in current assets.
- Subtract the decrease in current liabilities or add the increase in current liabilities.
- The result is the operating profit after adjusting for working capital changes.
4. Calculate the difference between opening and closing balance in the statement of profit and loss (Option C):**
- Determine the opening and closing balances of the profit and loss statement.
- Calculate the difference between these two balances.
5. Calculate cash generated/cash used from operating activities by deducting tax paid from operating profit (Option E):
- Deduct tax paid from the operating profit after adjusting for working capital changes.
- The result is the cash generated or used from operating activities.
So, the correct answer is D: C, A, B, D, E.
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Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer?
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Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer?.
Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer?.
Solutions for Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts.
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Here you can find the meaning of Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Arrange the f ollowing into correct sequence while computing cash flow from operating actives.A. Compute Net Profit before tax after m aking necessary adjustments.B. Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.C. Calculate the dif ference between opening and closing balance in statement of profit and loss.D. Compute operating profit by making adjustment for working capital changes.E. Cal culate c ash gener at ed/c ash used f rom operating activities by deducting tax paid from operating profit.Choose the correct answer from the options given below:a)A, C, D, B, Eb)C, A, D, B, Ec)A, B, D, C, Ed)C, A, B, D, ECorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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