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4. The Mindanao Co. operates a branch in Cagayan. Operating data for the home office and the branch for the year follow: Home Office Branch

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4. The Mindanao Co. operates a branch in Cagayan. Operating data for the home office and the branch for the year follow: Home Office Branch Sales P256,000 P 78,500 Purchases from outsiders 210,000 20,000 Shipments to Branch: Cost to Home Office 30,000 Billing price to Branch 40,000 Operating Expenses 60,000 12,500 Inventories, January 1: Acquired from outsiders at cost 80,000 7,500 Acquired from home office at billed price which averaged 22.5% above cost 24,500 Inventories, December 31: Acquired from outsiders at cost 55,000 5,500 Acquired from home office at current year's billed 26,000 price Required: Prepare individual and combined income statement

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