On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $5,500 cash.

The statements of financial position of the two companies immediately after the acquisition transaction appear below.

	P Company			S Company
	Carrying Amount			Carrying Amount			Fair Value
Plant and equipment (net)	$	8,500		$	4,700		$	3,600
Investment in S Company		5,500
Inventory		5,560			4,400			4,700
Accounts receivable		3,950			2,200			2,200
Cash		2,300			1,450			1,450
	$	25,810		$	12,750
Ordinary shares	$	10,900		$	3,400
Retained earnings		8,810			3,650
Long-term liabilities		3,500			2,400			2,400
Other current liabilities		1,600			2,200			2,200
Accounts payable		1,000			1,100			1,100
	$	25,810		$	12,750

Required:

(a) Prepare a consolidated statement of financial position in order of liquidity i.e starting with cash at the date of acquisition under each of the following:

(i) Identifiable net assets method

(ii) Fair value enterprise method

(b) Calculate the current ratio and debt-to-equity ratio for P Company under the identifiable net assets (INA) method and the fair value enterprise (FVE) method. (Round "Current ratio" answers to 2 decimal places and "Debt to equity ratio" answers to 4 decimal places.)

	INA		FVE
Current ratio
Debt to equity ratio