Accounting · Cash Flow from Operating Activities
Arrange the following steps in the correct sequential order for calculating Cash from Operating Activities using the indirect method: A. Adjusting for changes in working capital components (Current Assets and Current Liabilities). B. Arriving at the final Net Cash from Operating Activities. C. Adding back non-cash charges such as depreciation to the profit figure. D. Using Net Profit after Tax as the initial starting base. Choose the correct answer from the options given below:
- 1D, A, C, B
- 2C, D, A, B
- 3A, C, D, B
- 4D, C, A, B✓
Correct answer
D, C, A, B
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