Chapter 4, Problem 4.2BYP

(a)

(1)

To determine

Financial Statements: A financial statement is a complete record of the financial transactions that takes place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements; they are the income statement, retained earnings statement, balance sheet, and statement of cash flows.

To determine: The total current assets for P Company and C Company

(2)

To determine

Net amount of property, plant, and equipment for P Company and C Company

(3)

To determine

Total current liabilities for P Company and C Company

(4)

To determine

The total equity for P Company and C Company

(b)

To determine

Conclusion derived on analysis of financial statements