1. The following is a list of the assets and claims of Quantum Innovations as at 31 October last year:
   • Trade payables: £87,000
   • Motor vehicles: £38,000
   • Long-term borrowing (loan from Innovation Finance Co.): £265,000
   • Equipment and tools: £210,000
   • Short-term borrowings: £120,000
   • Inventories: £145,000
   • Property: £325,000
   • Trade receivables: £180,000

Required:

(a) Prepare the statement of financial position of the business as at 31 October 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 performance revealed by this financial statement.