Response to the following problem:
The following is a list of the assets and claims of Crafty Engineering Ltd at 30 June last year
£000
Trade payables 86
Motor vehicles 38
Long-term loan from Industrial Finance Co. 260
Equipment and tools 207
Short-term borrowings 116
Inventories 153
Property 320
Trade receivables 185
Required:
(a) Prepare the balance sheet of the business as at 30 June last year from the above information using the vertical layout. (Hint: There is a missing item that needs to be deduced and inserted.)
(b) Discuss the significant features revealed by this financial statement.