The following information was extracted from the financial records of LDQ Ltd:
Extract of the Statement of Financial Position as at 31 May 2022
ASSETS Note R
Non-current assets 2 000 000
Property, plant and equipment 1 1 600 000
Fixed deposit (5% p.a) 400 000
Current Assets ?
Inventories 2 800 000
Accounts receivable ?
Cash and cash equivalents 50 000
5 400 000
EQUITY AND LIABILITIES
Equity ?
Ordinary share capital 2 800 000
Retained earnings ?
Non-current liabilities: Loan (18% p.a) 700 000
Current liabilities: Accounts payable 800 000
NOTE:
1. Property, plant and equipment comprise the following:

Vehicles Equipment
Cost 1 700 000 2 300 000
Accumulated depreciation (200 000) (2 200 000)

Required:
2.1 Calculate the following amounts:
2.1.1 The amount owing to the company for credit sales. (2)
2.1.2 Retained earnings. (2)
2.2 Explain how the following accounting concepts apply to the preparation of the company’s
financial statements:
2.2.1 Full disclosure (2)
2.2.2 Going concern (2)
2.3 State your observations and recommendations with regard to the following:
2.3.1 Property, plant and equipment (4)
2.3.2 Fixed deposit (4)
2.3.3 Inventories (4)