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