1. The following is a list of the assets and claims of Titan Industries as at 31 December last year:
   • Trade payables: £92,000
   • Motor vehicles: £45,000
   • Long-term borrowing (loan from Commercial Finance Bank): £280,000
   • Equipment and tools: £215,000
   • Short-term borrowings: £125,000
   • Inventories: £160,000
   • Property: £340,000
   • Trade receivables: £190,000

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) Discuss the liquidity position revealed by this financial statement.