Pye Co has owned 75 per cent of the 100 000 shares of S Co since the incorporation of S Co. During the year to 31 December 2012, S Co sold goods costing Shs.16 000 to P Co at a price of Shs.20 000 and these goods were still unsold by P Co at the end of the year. Draft statements of financial position of each company at 31 December 2012 were as follows:

Pye Co has owned 75 per cent of the 100 000 shares of S Co since the incorporation of S Co. During the year to 31 December 2012, S Co sold goods costing Shs.16 000 to P Co at a price of Shs.20 000 and these goods were still unsold by P Co at the end of the year. Draft statements of financial position of each company at 31 December 2012 were as follows:

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

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