On December 31, Year 1, P Company purchased 90% of the outstanding shares of S Company for $7,200 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)	$	8,200		$	6,200		$	5,000
Investment in S Company		7,200
Inventory		5,260			3,850			4,100
Accounts receivable		3,350			1,900			1,900
Cash		1,700			1,150			1,150
	$	25,710		$	13,100
Ordinary shares	$	10,600		$	3,100
Retained earnings		9,110			5,200
Long-term liabilities		4,000			2,100			2,100
Other current liabilities		1,300			1,900			1,900
Accounts payable		700			800			800
	$	25,710		$	13,100

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