Problem 2: Quality Refreshment Company furnished the following transactions for the year 2020 1. Company purchased plant cost RO 50000 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:- Particulars Cash January 1, 2020 6400 December 31, 2020 8200 Accounts Receivable (A/R) 28300 30700 Inventory 38400 41600 Accounts Payable (A/P) 30200 34800 Outstanding Expenses 1800 2200 4. The detail of company's borrowing and share capital is given below:- Particulars January 1, 2020 December 31, 2020 Term Loan 30000 40000 Bonds Payable 20000 20000 Equity Share Capital 50000 60000 Retained earnings 10800 12600 The indices for the year are given as: - January 1, 2020 150 152 Requirement:- Calculated depreciation adjustment, COSA, MWCA, gearing ratio and gearing adjustment December 31, 2020 154 Average