Preparing a consolidated income statement - with noncontrolling interest, but no AAP or intercompany profits A parent company purchased an 80% interest in its subsidiary several years ago with no AAP (i. e., purchased at book value). Each reports the following income statement for the current year. Parent Subsidiary Income statement: Sales $5,000,000 $750,000 Cost of goods sold 3,500,000 450,000 Gross profit 1,500,000 300,000 Income (loss) from subsidiary 84,000 0 Operating expenses 950,000 195,000 Net income $634,000 $105,000 a. Compute the Income (loss) from subsidiary of $84,000 reported by the parent company.

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld