.. . Q5. a) The following ledger balances extracted from the Adjusted Trial Balance of X Company L.L.C for the year ending 31" December 2019: Sales Revenue OMR 300,000 Cost of Goods sold OMR 120,000 Selling Expenses OMR 10,000 Administration Expenses : OMR 5,000 Opening Retained earnings OMR 10,000 Dividends paid OMR 2,500 Instructions: 1) Prepare multiple-steps Income statement and determine net income (2 Marks) ii) Closing journal entries of X Company (2 Marks) Answer: : b) The following details related to Hashim Retail Company L.L.C for the year ending 31" March 2020; Opening value of inventory on 1" April, 2019 amounted OMR. 150,000,000 Cost of merchandise inventory bought during 2019-20 amounted OMR. 250,000,000 Closing value of merchandise inventory on 31" March, 2020 amounted to OMR. 200,000,000. You are also required to: i) Determine cost of goods sold (COGS) for the year ended 31* March, 2020 (2 Marks) ii) Write journal entry to record purchase of inventory and cost of goods sold (COGS). (2 Marks) iii) What is the impact of increase or decrease in cost of goods sold' on the Gross profit of the company? Discuss the determinants of cost of goods sold. (2 Marks)