Consolidated Statements Hammel Corporation recently issued consolidated financial statements. The corporation has two major operating subsidiaries. Ima Pain holds Hammel stock in his retirement account and has carefully reviewed the consolidated statements. He has asked for your assistance in answering the following questions:

a. Although Hammel has two major subsidiaries, the consolidated balance sheet does not report an investment in either company in the Investments section. Has Hammel made a mistake in preparing the statements? Explain.

b. The ship-building subsidiary supposedly lost money last year, yet Hammel reports a satisfactory profit for the year, and there is no evidence of a loss. Has something been done to cover up the loss? Explain.

c. The claim of the minority interest of the manufacturing subsidiary is shown on the balance sheet, but the assets of the subsidiary are not identified anywhere. Has something been left out? Where are the assets?

d. Ima Pain thought the parent and both subsidiaries had issued additional stock during the year, but only the shares of the parent company are disclosed in the consolidated statements. Have all shares of the subsidiary been retired?

Where are they?