1. The following is a list of the assets and claims of Zeta Pharmaceuticals as at 30 June last year:
   • Trade payables: $87,000
   • Motor vehicles: $40,000
   • Long-term borrowing (loan from PharmaFinance Bank): $285,000
   • Equipment and tools: $215,000
   • Short-term borrowings: $125,000
   • Inventories: $160,000
   • Property: $345,000
   • Trade receivables: $185,000

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) Discuss the company's financial stability revealed by this financial statement.