The balance sheet of Rackett & Ball plc., a U.K.-based sporting goods manufacturer, is presented here. Figures are stated in millions of pounds (￡m). During the year, the producers’ price index increased from 100 to 120, averaging 110.The aggregate current cost of sales, depreciation, and monetary working capital adjustment is assumed to be ￡216m. Required: Assuming that changes in the producer’s price index are a satisfactory measure of the change in R&B’s purchasing power, calculate, as best as you can, R&B’s monetary working capital adjustment and its gearing adjustment

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E2010 m 2 4 2 Marketable securities (160) 0 Total assets less current liabilities Long-term liabilities 6 3 2 8 2 2 Premium on common stock 108 Total owner's equity