Toms plc has a year end of 31 December. The company signed a lease contract on 1 January 202 with a commercial property landlord, to lease a warehouse unit for a 20 year period. Annual rentals are 80,000 payable in arrears. The lease contract contained an option to extend the lease for a further 5 years, and the rentals would be 100,000 per annum payable in arrears. The interest rate is 6%. It is not currently likely that Toms plc will extend the lease beyond the initial 20 year period. The warehouse unit had a fair value at the start of the lease of 917,600, a useful life of 25 years and is depreciated straight line. Required: a) Calculate the carrying value of the right of use asset at 31 December 203, and the 20X3 depreciation charge to be shown in the financial statements of Toms plc. 2 marks b) Calculate the current and non-current lease liabilities at 31 December 203. 5 marks c) Calculate the 203 finance cost relating to this lease. 1 mark d) What amount(s) would need to be shown in the statement of cash flows of Toms plc for the year ended 31 December 20X3, and in which section(s) of the statement of cash flows would it/they be shown? e) How would Toms plc be able to treat this item differently under IFRS 16 Leases if it had been a lease contract for shorter than 12 months? Note: further calculations are not required. 2 marks f) How would the accounting treatment in a)-d) affect the following ratios of Toms plc, compared with the treatment in e), in the 20X3 financial statements? Briefly explain your answers. i. Return on capital employed ii. Gearing iii. Interest cover 6 marks