Oatley Ltd started business on 1 July 2022 and had the following transactions on 1 July:

a Issued 300 000 shares of $1 for $300 000 cash.

b Bought equipment for $400 000, paying cash. The equipment has a five-year life.

c Bought $115 000 inventory on credit.

d Paid $10 000 for a year’s rent on a building.

e Took out a two-year $400 000 bank loan at an interest rate of 7 per cent per annum. The interest is not payable until the end of the loan.

Between 1 July and 31 December, the following transactions occurred:

f Sold inventory that cost $100 000 for $180 000. All sales were on credit.

g Paid $50 000 to suppliers of inventory for the credit purchases in point c.

h Collected $90 000 from customers.

i Paid salaries of $20 000.

j Received an $8000 deposit from a customer for work to be completed next February.

On 31 December:

k Salaries of $6000 had been earned but not paid.

l Owed $15 000 by the bank for interest.

For the period 1 July to 31 December 2022:

1 List all revenues (including dollar amounts) that will appear in the income statement.

2 List all expenses (including dollar amounts) that will appear in the income statement.

3 List all operating cash inflows and outflows (refer to Chapter 1).

4 Calculate the closing balance of all asset accounts (note that all opening balances are zero).