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The following is a list of the assets and claims of Omega Logistics as at 30 June last year: Trade payables: $88,000 Motor vehicles: $41,000
- The following is a list of the assets and claims of Omega Logistics as at 30 June last year:
- Trade payables: $88,000
- Motor vehicles: $41,000
- Long-term borrowing (loan from Logistics Finance Co.): $265,000
- Equipment and tools: $210,000
- Short-term borrowings: $120,000
- Inventories: $150,000
- Property: $340,000
- Trade receivables: $180,000
Required:
(a) Prepare the statement of financial position of the business as at 30 June 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 company's financial leverage revealed by this financial statement.
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