1. The following is a list of the assets and claims of Psi Tech as at 31 March last year:
   • Trade payables: £86,000
   • Motor vehicles: £38,000
   • Long-term borrowing (loan from Tech Finance Co.): £260,000
   • Equipment and tools: £207,000
   • Short-term borrowings: £116,000
   • Inventories: £153,000
   • Property: £320,000
   • Trade receivables: £185,000

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) Discuss the significant features revealed by this financial statement.