1. The following is a list of the assets and claims of Atlas Engineering as at 30 November last year:
   • Trade payables: £84,000
   • Motor vehicles: £37,000
   • Long-term borrowing (loan from Engineering Finance Co.): £255,000
   • Equipment and tools: £200,000
   • Short-term borrowings: £110,000
   • Inventories: £145,000
   • Property: £315,000
   • Trade receivables: £175,000

Required:

(a) Prepare the statement of financial position of the business as at 30 November last year from the information provided, using the standard layout. (Hint: There is a missing item that needs to be deduced and inserted.)

(b) Discuss the financial stability revealed by this financial statement.