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Question - Paul Company holds 80% of the common stock of Shane, Inc. In the current year, Paul reports sales of P10,000,000 and COGS of P7,500,000. For the same period, Shane has sales of P200,000 and COGS of P160,000. During the year, Paul sold merchandise to Shane for P60,000 at a price based on the normal mark-up. At the end of the year, Shane still possesses 30% of this inventory.
Required -
1. Compute the Consolidated sales.
2. Compute the Consolidated COGS.
3. Compute the Consolidated GP.
4. Assume the same information, except that Shane sold inventory to Paul. Compute for the consolidated sales.
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