1. The following is a list of the assets and claims of Lambda Enterprises as at 31 March last year:
   • Trade payables: £88,000
   • Motor vehicles: £41,000
   • Long-term borrowing (loan from Enterprise Finance Co.): £270,000
   • Equipment and tools: £210,000
   • Short-term borrowings: £125,000
   • Inventories: £165,000
   • Property: £340,000
   • Trade receivables: £195,000

Required:

(a) Prepare the statement of financial position of the business as at 31 March last year from the information provided, using the standard layout. (Hint: There is a missing item that needs to be deduced and inserted.)

(b) Evaluate the liquidity management revealed by this financial statement.