Parker corporation owns 80 percent of smith inc.’s common stock. during 20x1, parker sold inventory to smith for $250,000 on the same terms as sales made to third parties. smith sold all of the inventory purchased from parker in 20x1. the following information pertains to smith’s and parker’s sales for 20x1: :

parker:
sales $ 1,000,000
cost of sales 400,000
total $ 600,000

smith:
sales $ 700,000
cost of sales $ 350,000
total $ 350,000

what amount should parker report as cost of sales in its year 20x1 consolidated income statement?

(a) $750,000
(b) $680,000
(c) $500,000
(d) $430,000

According to ceo heidi ganahl, camp bow wow requires a strong and consistent corporate culture to keep all local franchise owners "on the same page" and to follow a common template for the business and brand. this culture could become detrimental over time because: (a) strong consistent cultures are inflexible and incapable of adapting to environmental change (b) strong consistent cultures are too flexible and capable of adapting to environmental change (c) strong consistent cultures don’t perform well in any environment (d) the passing of time provides stability and predictability for businesses