QUESTION TWO [25] 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 companys 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)