=+Problem 1.1 A company is set up with $200,000 cash; and during its first six months the following events and transactions occur:

• January: machinery is bought for $100,000 cash.

• February: goods are bought for $50,000 cash.

• March: the same goods are sold for $150,000 cash.

• April: further goods are bought for $200,000 cash.

• May: the goods are sold, on two months’ credit, for $300,000.

• June: valuers reckon the machinery is now worth $80,000.

Calculate:

a) profit for the six-month period

b) cash flow from operations for the period

c) the end-of-June cash balance.