Prepare a format of cash flow from operating activities under indirect method.
Indirect Method
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Cash Flow from Operating Activities:
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Net Profit before tax and extraordinary items
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***
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Add:
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Non-Cash Expenses and Non-Operating Expenses
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Depreciation
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**
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Goodwill
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**
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Interest paid
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**
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Loss on sale of fixed assets
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**
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Foreign exchange
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**
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**
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Less:
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Non Operating Incomes.
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Dividend received
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**
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Profit on sale of fixed assets
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**
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Interest received
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**
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**
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Operating profit before working capital changes
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***
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Add: Decrease in Current Assets
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***
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Increase in Current Liabilities
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***
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***
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Less: Increase in Current Assets
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***
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Decrease in Current Liabilities
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***
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***
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Cash generated from Operating Activities
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***
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Income tax paid
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***
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Cash Flow before Extraordinary Items
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***
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Add/Less: Extra ordinary Items
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***
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Net Cash Flow from Operating Activities
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***
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