1. The following is a list of the assets and claims of SolarTech Manufacturing as at 30 September last year:
   • Trade payables: $88,000
   • Motor vehicles: $40,000
   • Long-term borrowing (loan from Industrial Bank): $270,000
   • Equipment and tools: $210,000
   • Short-term borrowings: $120,000
   • Inventories: $150,000
   • Property: $335,000
   • Trade receivables: $180,000

Required:

(a) Prepare the statement of financial position of the business as at 30 September 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 solvency position revealed by this financial statement.