Case 4: As a part of the account's finalization team for XYZ SAOG you been allocated certain transactions which you have to deal with. Such items relate to inventory valuation and preparation of cash flow staternent. You are required to provide with appropriate treatment with regards to the underlying standards: Inventory items: For each of the items mentioned below provide the correct treatment, comments and calculate the amount of each item of inventory (6 marks) Item 1: the company purchased a 2,000 Kilos of a special food chemical @ RO 0.050 per 100 grams. Towards the end of the period, it had a contract to sell 700 kilos @ RO 0.400 per kilo in the month of January 2020 and the market price at the end of the period was RO 0.390 per kilo. Item 2: The Company purchased 100,000 barrels of apple cider vinegar @ of RO 15 per barrel. The company sold around 60% of this purchased stock @ RO 20 per barrel. Thereafter the price of such vinegar fell down to 0.094 per litre and towards the end of the year it was RO 0.080 per litre. There took no other sale after the above-mentioned sale. Each barrel consists of 159 litres of vinegar Item 3. The Company had a contract to sell 5,000 kilos of baking soda each month with a local supermarket chain of RO 1.750 per kilo. The price is fixed for 3 months starting from November 2019. The quantity has to be delivered at the beginning of each month. On 25th of December 2019 the company had to make a purchase of 8,000 kilos of baking soda @ RO 2 to fulfill its requirement including for the contract above. The company is also in the process of preparing its cash flow statement: For each of the items mentioned below provide with your necessary comments and treatment. (4 marks) The company has a foreign investment worth $ 1.2 million. Its functional currency is Omani riyals. At the end of the year they have an unrealized gain arising from changes in foreign currency on such investment of RO 21,126 was shown in the cash flow from investing activities. The company also redeemed debentures worth RO 500,000 by issuing shares of the same value. This was shown as cash outflow from investing activities. Case 4: As a part of the account's finalization team for XYZ SAOG you been allocated certain transactions which you have to deal with. Such items relate to inventory valuation and preparation of cash flow staternent. You are required to provide with appropriate treatment with regards to the underlying standards: Inventory items: For each of the items mentioned below provide the correct treatment, comments and calculate the amount of each item of inventory (6 marks) Item 1: the company purchased a 2,000 Kilos of a special food chemical @ RO 0.050 per 100 grams. Towards the end of the period, it had a contract to sell 700 kilos @ RO 0.400 per kilo in the month of January 2020 and the market price at the end of the period was RO 0.390 per kilo. Item 2: The Company purchased 100,000 barrels of apple cider vinegar @ of RO 15 per barrel. The company sold around 60% of this purchased stock @ RO 20 per barrel. Thereafter the price of such vinegar fell down to 0.094 per litre and towards the end of the year it was RO 0.080 per litre. There took no other sale after the above-mentioned sale. Each barrel consists of 159 litres of vinegar Item 3. The Company had a contract to sell 5,000 kilos of baking soda each month with a local supermarket chain of RO 1.750 per kilo. The price is fixed for 3 months starting from November 2019. The quantity has to be delivered at the beginning of each month. On 25th of December 2019 the company had to make a purchase of 8,000 kilos of baking soda @ RO 2 to fulfill its requirement including for the contract above. The company is also in the process of preparing its cash flow statement: For each of the items mentioned below provide with your necessary comments and treatment. (4 marks) The company has a foreign investment worth $ 1.2 million. Its functional currency is Omani riyals. At the end of the year they have an unrealized gain arising from changes in foreign currency on such investment of RO 21,126 was shown in the cash flow from investing activities. The company also redeemed debentures worth RO 500,000 by issuing shares of the same value. This was shown as cash outflow from investing activities