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

£000 Trade payables 86 Motor vehicles 38 Long-term borrowing (loan from Industrial Finance Company)

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 information provided, 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.