Autopart Manufacturing Ltd., incorporated 15 years ago, has grown to be a successful competitor in the cost- and quality- conscious auto parts manufacturing market. Autopart specializes in relatively standard replacement parts sold under store brand labels in hardware stores. Since people own cars longer than ever ( now an average of 8.5 years), the auto repair business is a growth sector of the economy. You have obtained the SFP for Autopart Manufacturing Ltd., and you have analyzed the basic financial structure of the company. You are thinking of investing in Autopart’s common shares, but looking at the SFP, you are reminded of the definitions of financial statement elements. You have decided to see how well the balance sheet items conform to the definitions. In particular, it is important to explain to yourself exactly why each item is an asset, liability, or equity item. The SFP is shown in Exhibit 1, and the notes to the financial statements in Exhibit 2.