Problem 2: Quality Refreshment Company furnished the following transactions for the year 2020 1. Company purchased plant cost RO50000 with expected life of 10 years. The replacement cost of machine on January 1,2020 is RO 52000 and on December 31,2020 is RO 54000. 2. The detail of its current assets and current liabilities is given below: - \begin{tabular}{l|c|c|} \hline \multicolumn{1}{|c|}{ Particulars } & January 1,2020 & December 31,2020 \\ \hline Cash & 6400 & 8200 \\ \hline Accounts Receivable (A/R) & 28300 & 30700 \\ \hline Inventory & 38400 & 41600 \\ \hline Accounts Payable (A/P) & 30200 & 34800 \\ \hline Outstanding Expenses & 1800 & 2200 \\ \hline \end{tabular} 4. The detail of company's borrowing and share capital is given below: - \begin{tabular}{|l|c|c|} \hline \multicolumn{1}{|c|}{ Particulars } & January 1,2020 & December 31,2020 \\ \hline Term Loan & 30000 & 40000 \\ \hline BondsPayable & 20000 & 20000 \\ \hline Equity Share Capital & 50000 & 60000 \\ \hline Retained earnings & 10800 & 12600 \\ \hline \end{tabular} The indices for the year are given as: - \begin{tabular}{|c|c|c|} \hline January 1,2020 & December 31,2020 & Average \\ \hline 150 & 154 & 152 \end{tabular} Requirement: - Calculated depreciation adjustment, COSA, MWCA, gearing ratio and gearing adjustment