Reference no: EM133104917
Question - Pak Co. owns 75% interest in Sak Co. acquired several years ago. Sak regularly sells merchandise to Pak at a mark - up of 20% of on selling price. Income statement data for the year 2019 as follows:
Pak and Sak respectively.
Sales P2,000,000 P1,600,000
COGS 1,600,000 1,280,000
Gross Profit 400,000 320,000
Selling and Admin 200,000 160,000
Net Income P200,000 P160,000
Ending inventory P600,000 P500,000
During 2019, Pak purchased inventory items from Sak at a selling price of P800,000. Pak's December 31, 2018 and 2019 inventories included goods acquired from Sak of P270,000 and P300,000, respectively.
Required -
1. Compute the consolidated sales for 2019?
2. Compute the consolidated cost of goods sold for 2019?
3. Compute the inventory to be presented in the 2019 consolidated balance sheet?
4. Compute the Unrealized profits in the year-end 2018?
5. Compute the Unrealized profits in the year -end 2019?
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