To calculate cash flows from operating activities, we follow these steps:
Start with Goodwill amortised (E) - this is a non-cash expense that needs to be added back.
Next, calculate Operating profit before working capital changes (A) - this shows profit before considering changes in working capital.
Then, we find Cash generated from operations (B) - this is the cash available from operating activities.
After that, we account for Income tax paid (C) - this is the cash outflow for taxes.
Finally, we arrive at Net cash flow from operating activities (D) - this is the total cash flow from operations after all adjustments.
So, the correct sequence is: (E) → (A) → (B) → (C) → (D).
This is why option 3 is correct.