Peter runs Antiquus, a business based in South East England, which buys and sells antique furniture. He has been in business for many years and has an accountant who prepares his statement of profit or loss and statement of financial position each year. He does not usually pay much attention to these financial statements but his sister, Emma, who has made a loan to the business, is keen to understand them. Extracts from the statement of financial positions at 31 January 2023 and 2022 are given below

Antiquus statements of financial position as at 31 January 2023 and 2022

2023 2022

ASSETS '000 '000 '000 '000

Non-current assets 120 127

Current assets Inventory 50 32

Trade receivables 1 1

Prepayments 3 2

Bank balance - 8

54 43

Total assets 174 170

CAPITAL AND LIABILITIES

Capital 127 130

Non-current liabilities Loan from Emma 35 35

Current liabilities

Trade payables 5 5

Bank overdraft 7 -

12 5

Total

capital and liabilities 174 170

The statement of profit or loss shows that the business made a profit for the year ended 31 January 2023 of 40,000. REQUIRED: Answer the following questions for Emma: a) Explain what is meant by a non-current asset and how it differs from a current asset.

b) What has happened to the business's bank balance over the last year?

c) Describe what would be included in inventory and comment on how it has changed over the last year.

d) Explain what prepayments are and why they are included as an asset.

e) Explain what is meant by trade payables