Chapter 3, Problem 3CP

1.

To determine

Identify the manner in which both the company named its income statement and explain the term consolidated.

2.

To determine

Identify the company which had higher net income for the year.

3.

To determine

Compute the net profit margin ratios for both the companies and identify the company which is managing its revenues and expenses more effectively than the other company.

4.

To determine

Compare the net profit margin ratio of both the companies and explain whether both the companies managing its sales and expenses better or worse than their competitors.

5.

To determine

Compute the percentage of change in operating cash flows.