The following is a list of the assets and claims of Crafty Engineering Ltd at 30 June last year:

£000 Trade payables 86 Motor vehicles 38 Long-term borrowing from Industrial Finance Co. 260 Equipment and tools 207 Short-term borrowings 116 Inventories 153 Property 320 Trade receivables 185 Required:

(a) Prepare the statement of financial position of the business as at 30 June last year from the above information using the standard layout. (Hint: There is a missing item that needs to be deduced and inserted.)

(b) Discuss the significant features revealed by this financial statement.

Chapter 2 Measu ring and 78 repo rti ng fi nancia l positio n AppendixLO1