ASSIGNMENT 2: BUSINESS FINANCE QUESTION 1 (20) REQUIRED Study the Statement of Financial Position of Vancouver Ltd as at 30 June 2019 and 2018 and answer the following questions: 1.1 Calculate the value of Trade and other receivables as at 30 June 2019. (2) 1.2 Explain why the following users would require the accounting information of Vancouver Ltd: 1.2.1 Investment analysts 1.2.2 Vivo Bank (3) (3) 1.3 What is the main duty of the external auditors to the shareholders with regard to the financial statements of Vancouver Ltd? (2) 1.4 Explain the impact on the value of inventory in the Statement of Financial Position when last-in-first-out (LIFO) method of inventory valuation rather than first-in-first-out (FIFO) is used during periods of inflation. (2) 1.5 Provide an interpretation of any FOUR (4) significant changes in the Statement of Financial Position that occurred over the two year period. (Ratios are not required.) (8) INFORMATION Vancouver Ltd Statement of Financial Position as at 30 June 2019 and 2018 ASSETS Non-current assets Land and buildings Plant and equipment Motor vehicles Current assets Inventories Trade and other receivables Cash Total assets 2019 (R) 6 700 000 3 900 000 2 500 000 300 000 2018 (R) 4 500 000 2 500 000 1 500 000 500 000 1 800 000 1 000 000 ? 3 000 90 000 EQUITY AND LIABILITIES Equity Non-current liabilities Loan from Vivo Bank Current liabilities Accounts payable Bank overdraft Total equity and liabilities 2019 (R) 5 280 000 3 120 000 3 120 000 2 400 000 1 300 000 1 100 000 10 800 000 2018 (R) 5 200 000 2 000 000 2 000 000 1 220 000 1 220 000 8 420 000