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The following is a list of the assets and claims of Titan Industries as at 31 December last year: Trade payables: 92,000 Motor vehicles: 45,000
- The following is a list of the assets and claims of Titan Industries as at 31 December last year:
- Trade payables: £92,000
- Motor vehicles: £45,000
- Long-term borrowing (loan from Commercial Finance Bank): £280,000
- Equipment and tools: £215,000
- Short-term borrowings: £125,000
- Inventories: £160,000
- Property: £340,000
- Trade receivables: £190,000
- Trade payables: £92,000
- Motor vehicles: £45,000
- Long-term borrowing (loan from Commercial Finance Bank): £280,000
- Equipment and tools: £215,000
- Short-term borrowings: £125,000
- Inventories: £160,000
- Property: £340,000
- Trade receivables: £190,000
Required:
(a) Prepare the statement of financial position of the business as at 31 December 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 liquidity position revealed by this financial statement.
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