1. The following is a list of the assets and claims of Epsilon Technologies as at 31 March last year:
   • Trade payables: £94,000
   • Motor vehicles: £42,000
   • Long-term borrowing (loan from TechFinance Co.): £300,000
   • Equipment and tools: £245,000
   • Short-term borrowings: £140,000
   • Inventories: £175,000
   • Property: £375,000
   • Trade receivables: £210,000

Required:

(a) Prepare the statement of financial position of the business as at 31 March 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 debt management strategy revealed by this financial statement.