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The following is a list of the assets and claims of Kappa Manufacturing as at 31 December last year: Trade payables: 92,000 Motor vehicles: 46,000
- The following is a list of the assets and claims of Kappa Manufacturing as at 31 December last year:
- Trade payables: €92,000
- Motor vehicles: €46,000
- Long-term borrowing (loan from Manufacturing Finance Co.): €280,000
- Equipment and tools: €230,000
- Short-term borrowings: €130,000
- Inventories: €160,000
- Property: €365,000
- Trade receivables: €200,000
- Trade payables: €92,000
- Motor vehicles: €46,000
- Long-term borrowing (loan from Manufacturing Finance Co.): €280,000
- Equipment and tools: €230,000
- Short-term borrowings: €130,000
- Inventories: €160,000
- Property: €365,000
- Trade receivables: €200,000
Required:
(a) Prepare the statement of financial position of the business as at 31 December last year from the information provided, using the standard layout. (Hint: There is a missing item that needs to be deduced and inserted.)
(b) Analyze the financial flexibility revealed by this financial statement.
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