INDIVIDUAL - Assignment TWO Information in the table below extracted from the latest financial reports of two Boursa Kuwait companies, Kuwait Cement Company and Gulf Cement Company. Average depreciation rate, average useful life and average age of the plant, machinery, and equipment are also given for both companies. KUWAIT CEMENT COMPANY Dec 31, 2018 Dec 31, 2019 Cost of Machinery and Equipment 206,413,378 209,941,511 Accumulated Depreciation (91,537.736) (97.605,912) Book value of Machinery and Equipment 114,875,642 112,335,599 Depreciation Expense of the year 5,324,443 6,087,276 Average annual depreciation rate 0.026 0.029 0.027 Average age (years) 17.19 16.03 Average useful life(years) 38.77 34.49 36.63 GULF CEMENT COMPANY Cost of Plant and Machinery Accumulated Depreciation Book value of Plant and Machinery Dec 31, 2018 Dec 31, 2019 1,034,015,381 1,063,371,135 (663,193,114) 721,075,602) 370,822,267 342,295,533 44,288,349 57,882,488 0.049 Depreciation Expense of the year Average annual depreciation rate Average age (years) Average useful life (years) 0.043 14.97 23.35 0.054 12.46 18.37 20.86 INDIVIDUAL - Assignment TWO Reason 2: Following the same (exactly the same) methodology used in your textbook for Lufthansa example on pages 123, 124 and 125 answer the questions below: QUESTION 3) (70 pts) What adjustments would be required if Kuwait Cement Company had been using the same depreciation rate with Gulf Cement Company? (SHOW ALL CACULATIONS AND IN THE END PREPARE A SUMMARY TABLE LIKE THE ONE ON PAGE 125 IN YOUR TEXTBOOK) a) Show the adjustments for 2018 balance sheet of Kuwait Cement Company (25 pts) b) Show the adjustments for 2019 balance sheet of Kuwait Cement Company (25 pts) c) Show the adjustments for 2019 income statement of Kuwait Cement Company. (20 pts)