Question Three Lava Company is a small construction company involved in housing development. The following statement of financial position as on December 31, 2019. (all figures in USS) Fixed Land and real 500,000 Vehicle 200,000 Fuminure and finings 1,000,000 Equipment and machinery 300,000 Non-current s 500,000 Current assets House under constructio Raw material Equipment for constructive Trade receivables Deposit paid Cash in hand Cash at bank Current liabilities Trade payables Note 11,300,000 500,000 2,700,000 No 2500,000 Note 31.500.000 Note 4350,000 2.140,000 10,000 500,000 Notes payables 1,200,000 Advanced deposit received Overdraft No $300,000 Non-trade payable 500,000 50,000 Wages payable 1,000,000 Short term trade financing 500,000 Financed by: Ordinary share capital $2 per 2,000,000 Share premium 1,500,000 Retained carning 250,000 Reserves Note 6100,000 Term lon Deferred taxation 2,950,000 Note 7250,000 Notes to the accountants 1. Inventory consists of completed residential accommodation 2. Market value of equipment for works is 60,000. The equipment for construction is not intended for sale. 3. On January 1, 2020, two customers have been declared bankrupt and the auditor of company ha assessed that the probability for the amount due t be paid extremely minimal. The total amount involved is $200,000. Additionally, the company also provided general provision on doubtful debts that amounted to 10% of outstanding trade receivables. 4. This is a deposit paid to various utility providers 5. Advanced deposit is the amount received from clients who booked their preferred residential units in advance. 6. The reserve is mean for charity, for education of staff and for the needy 7. The deferred taxation includes tax payable for the year of 50,000. Additional information a. The zakat rate is 2.5% b. The company pays zakat on behalf of its shareholders and assumes that all shareholders are Muslims