Sigma Inc.
 Date: 31 December 2023

Details:

1. Raw material inventory (steel):
   • Cost: £55,000
   • Replacement cost: £53,000
2. Finished goods inventory:

Product	Epsilon	Zeta
Direct costs	£95,000	£75,000
Proportion of fixed overhead	£28,000	£22,000
Proportion of selling costs	£8,000	£7,000
Net realizable value	£135,000	£110,000

3. Furniture:
    Acquired on 1 January 2020 for £180,000, depreciated over 8 years using the straight-line method.
4. Buildings:
    Acquired 16 years ago for £2,500,000, land value estimated at £600,000. Buildings are depreciated over 60 years.
5. Research and development:
   • Research costs: £85,000
   • Development costs: £105,000, benefiting over 7 years.

Required:
 Analyze how these items will impact Sigma Inc.'s financial statements for the period ending 31 December 2023.