Given below is the statement of financial position for Andy Limited at 30 June 2016. The following transactions took place in the first week of July 2016:

• 1 July 2016: paid a trade payable with a cheque from the bank for £2,500 and received a cheque for £3,000 from a trade receivable.

• 2 July 2016: took out a bank loan (full repayment is due on 30 June 2019) with which to buy a new vehicle costing £20,000. The vehicle purchase agreement was signed on 2 July 2016.

• 4 July 2016: sold goods costing £7,500 to a customer on credit terms, the customer agreeing to pay for those goods on 3 August 2016. The goods were sold for a selling price of £10,000.

• 5 July 2016: sold goods costing £2,500 to a customer for £3,250. The customer paid cash for the goods.

• 6 July 2016: received new inventory from a supplier. The new inventory cost £15,000 and Andy Limited has agreed to pay for the inventory on 5 August 2016.

• 7 July 2016: paid tax of £3,000 and a trade payable of £7,000 from the bank account.

Required 

Show how the above transactions would increase or decrease the various balances on the statement of financial position and draw up and balance the new statement of financial position at 7 July 2016.

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Andy Limited Statement of financial position at 30 June 2016 ASSETS Non-current assets Property, plant and equipment 320,000 Current assets Inventories 50,000 Trade receivables 75,000 Cash and cash equivalents 20,000 145,000 465,000 Total assets LIABILITIES Current liabilities Trade payables 80,000 Taxation 20,000 100,000