Roger has a building worth £25,000, land worth £125,000, a car worth £10,000. He has a mortgage on the building of £20,000 and a car loan of £12,000. He owes R. Graham £2,000 for supplies bought during the year. These have all been used up. He sold goods to G. Live for £1,000. G. Live has not yet paid him.

Required:
a. Use the accounting equation to determine Roger’s net worth (capital balance).
b. Prepare a statement of financial position in vertical format using the accounting equation information.