Rho Ltd
 Date: 31 January 2024

Details:

1. Raw material inventory (fiber):
   • Cost: £45,000
   • Replacement cost: £43,000
2. Finished goods inventory:

Product	Theta	Lambda
Direct costs	£80,000	£65,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£5,000	£4,500
Net realizable value	£125,000	£100,000

3. Equipment:
    Acquired on 1 February 2017 for £350,000, depreciated over 10 years using the straight-line method.
4. Buildings:
    Acquired 22 years ago for £3,000,000, land value estimated at £750,000. Buildings are depreciated over 60 years.
5. Research and development:
   • Research costs: £280,000
   • Development costs: £410,000, benefiting over 7 years.

Required:
 Analyze the impact of these items on Rho Ltd's financial statements for the year ending 31 January 2024.