(a)
Financial Statements: A financial statement is a complete record of the financial transactions that takes place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. There are four basic financial statements; they are the income statement,
The total current assets, net amount of property, plant, and equipment, total current liabilities, and total equity for Company P and Company C, in (1), (2), (3), and (4).
(b)
To explain: The financial position of the two companies
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