Problem $2$

Pilot Company holds $80\%$ of Signet Company stock.

Pilot has sold inventory to Signet Company as follows:

The following balances were included in the individual

financial statements of each company for the year ended

$12/31/2022$:

Sales

a$.$ What will be reported as consolidated sales in the year $2022?$

b$.$ What will be reported as consolidated inventory at $\frac{12}{31}\frac{?}{2022}?$

c$.$ What will be reported as consolidated cost of goods sold for $2022?$

d$.$ Were the intra$-$entity sales of inventory items upstream or

downstream?