Xi Inc.
 Date: 30 June 2023

Details:

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

Product	Alpha	Beta
Direct costs	£90,000	£70,000
Proportion of fixed overhead	£25,000	£20,000
Proportion of selling costs	£6,000	£5,000
Net realizable value	£130,000	£95,000

3. Furniture:
    Acquired on 1 July 2019 for £200,000, depreciated over 10 years with no residual value using the straight-line method.
4. Buildings:
    Acquired 18 years ago for £1,800,000, land value estimated at £400,000. Buildings are depreciated over 50 years.
5. R&D expenditure:
   • Research: £65,000
   • Development: £80,000, benefiting over 6 years.

Required:
 Analyze how these items will impact Xi Inc.'s balance sheet and income statement for the period ending 30 June 2023.