1. The following is a list of the assets and claims of Nova Industries as at 31 January last year:
   • Trade payables: $89,000
   • Motor vehicles: $40,000
   • Long-term borrowing (loan from Industrial Finance Co.): $270,000
   • Equipment and tools: $210,000
   • Short-term borrowings: $125,000
   • Inventories: $150,000
   • Property: $330,000
   • Trade receivables: $185,000

Required:

(a) Prepare the statement of financial position of the business as at 31 January 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 liquidity and capital structure revealed by this financial statement.