The comparative financial statements for Halley Company for 2018 and 2019 are presented below.

Halley Company
Comparative Balance Sheets
For years ended 2018 and 2019
June 30 2019 June 30 2018
Assets $ $
Cash 53,000 52,000
Accounts receivable 106,000 93,000
Inventory 162,000 151,000
Land 300,000 300,000
Buildings and equipment (at cost) 845,000 790,000
Less: Accumulated depreciation (514,000) (460,000)
Total Assets 952,000 926
Liabilities and Share Equity
Accounts payable 141,000 136,000
Interest payable 8,000 10,000
Mortgage payable 109,000 120,000
Share capital 520,000 520,000
Retained earnings 174,000 140,000
Total Liabilities and Share Equity 952,000 926,000


Halley Company
Statement of Profit and Loss
for the year 2019
$ $
Sales revenue 1,200,000
Cost of goods sold (788000.00)
Gross profit 412000.00
Other expenses:
Wages and Salaries 280,000
Depreciation 54,000
Interest 12,000
Income taxes 22,000 (368000.00)
Net Profit 44000.00
Dividends Paid (10000.00)
Additions to Retained earnings 34000.00
Retained earnings, Jun 30 2018 140000.00
Retained earnings, Jun 30 2019 174000.00


Other Information:

  • All Sales to customers are made on credit.
  • There have been no sales of Building and Equipment during 2019.

Bill Bailey, the CEO of Halley Company is most concerned. Although he has made a profit of $44,000 in 2019 his cash balance during the year has increased by only $1,000. 

Required: [Show all workings where necessary] 

  1. Determine the following amounts that relate to Halley’s Cash Flow from Operations for the 2019 financial year:
    1. How much cash did Halley receive from its customers in 2019?
    2. How much cash was paid to Halley’s suppliers of Inventory during 2019?
    3. How much cash did Halley spend on Salaries and wages during 2019?
    4. How much cash did Halley spend on Interest payments during 2019?
    5. How much cash did Halley pay in Income taxes during 2019?
    6. What was the Cash Flow from Operations for the 2019 financial year?
  2. What was the Cash Flow from Investing Activities for the 2019 financial year?
  3. What was the Cash Flow from Financing Activities for the 2019 financial year?

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