ILLUSTRATION 12 Following data relate to Gearing Ltd. (i) Net Long Term Borrowings Creditors Bank Overdraft Beginning of the year 14,000 $'000 End of the year 14,000 4,000 2,800 5,000 5,600 Taxation 1,500 1,400 Cash -5,000 -8,400 Net Borrowings 19,500 15,400 Share Capital & Reserves from Current Cost Balance Sheet 37,080 47,056 Proposed Dividend 500 600 Total Shareholders' Interest 37,580 47,656 iii) Current Cost Adjustment Depreciation Fixed Assets Disposal Cost of Sales Adjustment Monetary Working Capital Adjustment 1,700 1,800 1,620 1,120 6,240 Find out i) Gearing Adjustment Ratio. [i) Current Cost Adjustment after Abating Gearing Adjustment