Top company holds 90 percent of bottom company’s common stock. in the current year, top reports sales of $800,000 and cost of goods sold of $600,000. for this same period, bottom has sales of $300,000 and cost of goods sold of $180,000. during the current year, top sold merchandise to bottom for $100,000. the subsidiary still possesses 40 percent of this inventory at the current year-end. top had established the transfer price based on its normal gross profit rate. what are the consolidated sales and cost of goods sold?

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?