1. The following is a list of the assets and claims of Zenith Construction as at 31 July last year:
   • Trade payables: $90,000
   • Motor vehicles: $42,000
   • Long-term borrowing (loan from Construction Finance Co.): $275,000
   • Equipment and tools: $220,000
   • Short-term borrowings: $130,000
   • Inventories: $155,000
   • Property: $350,000
   • Trade receivables: $190,000

Required:

(a) Prepare the statement of financial position of the business as at 31 July 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 solvency and profitability revealed by this financial statement.