2. Benjamin has a transport business Benjamin's Brilliant Buses (BBB). He has drawn up a statement of financial position to show the bank manager. He wants to arrange an overdraft and also obtain a new bank loan. Benjamin intends to buy some new equipment that will allow him to carry out his own repairs to the buses. This will benefit BBB as it will not have to pay expensive machine maintenance and repair costs. Benjamin believes that keeping a supply of fuel is important so that BBB never run out of fuel for the buses. It is expensive to do this but he can always meet demand as his buses are always refilled at short notice. BBB owns 10 buses but the value of them has reduced due to depreciation. Non-Current Assets $000s Equipment 100 Vehicles 1000 Current Assets Inventory 30 Accounts Receivable 20 Cash 10 Total Assets 1160 Current Liabilities Account Payable Overdraft 0 Non-Current Liabilities Long Term Bank Loan 100 Total Liabilities 140 Total Assets - Total Liabilities 1020 Share-holder's Equity Share Capital / Owners Funds 500 Retained Profit / Reserves 520 Total Shareholder's Equity / Owners Funds 1020 40 a. Define 'Statement of Financial Position? [2] b. Calculate the working capital for Benjamin's business. [2] 1 C. Identify two stakeholder groups who would be interested in Benjamin's Statement of financial position and for each stakeholder group outline why they are interested. Stakeholder 01: [4] 2 Reason: 1 Stakeholder 02: Reason: 1 1 2 d. Identify and explain two reasons why owner's funds are important to Benjamin's business. [6] Explanation: 1 1 Reason 01: T Explanation: Reason 02: 1 1 2 e. Do you think the statement of financial position or the income statement of another company is the most important document for Benjamin to look at when deciding to takeover this business? Justify your answer [6] 2 1 1 1