1. The following is a list of the assets and claims of Orion Technologies as at 28 February last year:
   • Trade payables: €85,000
   • Motor vehicles: €39,000
   • Long-term borrowing (loan from Tech Finance Co.): €260,000
   • Equipment and tools: €205,000
   • Short-term borrowings: €115,000
   • Inventories: €140,000
   • Property: €320,000
   • Trade receivables: €180,000

Required:

(a) Prepare the statement of financial position of the business as at 28 February 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 leverage revealed by this financial statement.